As we told you this afternoon, Apple reported a bombshell fiscal second quarter report with iPhone revenue up 65.5% and iPad sales up 79% year-over-year. After issuing the report, Apple hosted the traditional conference call and there was big (albeit not bullish) news from Apple.
According to AppleInsider, CEO Tim Cook told those listening to the call that there could be supply issues relating to the iPad and the Mac during the second half of this year. The executive noted that the issue will be with supply, not demand. When asked how the global chip shortage is impacting Apple, Cook said, "We expect to be supply-gated, not demand-gated."
Apple is already feeling the impact of the chip shortage acknowledged CFO Luca Maestri. While Maestri said that Apple expects "strong double-digit growth" year-over-year in the current quarter, on a sequential basis he expects to see larger declines than normal in revenue from the fiscal second quarter to the fiscal third quarter.
That mixed outlook has kept investors from sending Apple's shares soaring following the release of the tech giant's fiscal second quarter earnings report. As this is being written, Apple's stock is up $3.14 or 2.35% to $136.72 in muted after-hours trading.
When asked when Apple could see an end to the chip shortage, Cook said that it was hard to reply with a good answer. "In order to answer that question accurately, we would need to know the true demand from each player and how that changes over the next few months, so it's difficult to give a good answer," said Cook. He added that "We have a good handle on our demand, but what everybody else is doing, I don't know. We will do our best, that's what I can tell you."
During the conference call, Cook also mentioned the early user feedback to the App Tracking Transparency (ATT) feature which debuted with this past Monday's update to iOS 14.5. With ATT, users are asked to opt-in if they want to continue being tracked by third-party apps for the purpose of receiving online ads. Users can also choose not to be tracked, the decision expected to be made by 68% of iOS users.
CEO Cook said that the ATT feature was created so that Apple can stand up on behalf of its customers. The executive says that feedback has been "tremendous," but couldn't say whether most users were opting-out to getting tracked. Despite the uncertainty of the numbers, Apple's chief executive said that even if only a small number of people used it to opt-out of getting tracked, it would be worth it.
"Most people should make their own mind up, whether they would like to be tracked or not," said Cook, who pointed out that the goal of the new feature is to put the user in control, not Apple or a third-party.