In Apple’s (NASDAQ: AAPL) 2Q2022 release, we saw Apple CEO Tim Cook giving guidance for 3Q2022 that didn’t make Wall Street very happy.
Cook revealed that supply chain constraints pertaining to COVID-driven plant shutdowns in the Shanghai area, along with industry component shortages, are expected to result in a substantial drag of US$4 billion to US$8 billion for fiscal 2022’s third quarter (3Q2022).
Also, with mounting inflationary pressures, Apple’s gross margin forecast of 42-43% implies that there may be a year on year margin contraction compared to the 43.3% in 3Q2021.
Investors of this blue-chip technology stock may wonder if this piece of news should get you worried.
But if you hold a long term view of the business, here are three reasons why you should not.
1. Demand for Apple’s products remains high
Remember that we are living in unusual times, with occurrences such asCOVID-19 and Russia’s invasion of Ukraine over the last two years....