Apple’s Sales And Profits Exceed Expectations as The Chip Shortage Eases

Apple reported record sales in the fourth quarter of 2021, the holiday season, with profits that beat expectations while overcoming an expensive global shortage of computer chips.

Analysts said the iPhone maker, the world’s largest by market value, has handled supply chain challenges such as factory closures and shipping delays caused by the coronavirus pandemic better than its peers.

Apple shares rose about five percent in after-hours trading, offsetting half of its losses over the year. The gains came after the company announced its ambitions in augmented reality.

The demand for the company’s products, including iPhones, iPads, and others, increased during the fourth quarter than it offered, which cost it more than six dollars in sales or in line with what it feared.

However, Apple, the largest customer of many of its suppliers of parts and components, has used its purchasing power to pressure those suppliers to ship enough gadgets to drive record sales of iPhone and Mac products and wearables, such as smartwatches and accessories.

Company executives have reported that the lack of chips often affects older models of its products and is slowing iPad sales in particular.