Apple results hit by supply chain woes, holiday quarter impact will be worse

Apple missed expectations in two key categories.

Apple said fourth-quarter iPhone sales were $38.9 billion, short of estimates of $41.5 billion, according to Refinitiv data.

Cook said that chips made with older technology remain the key supply constraint. He said that Apple remains unsure whether the shortages will ease after the holiday shopping season.

"It's very difficult to call," Cook told Reuters.

The company's accessories segment, which contains fast-growing categories like its AirPods wireless headphones, came in at $8.8 billion, half a billion dollars lower than analyst expectations of $9.3 billion, according to Refinitiv data.

Other segments fared better. Sales for iPads and Macs were $8.3 billion and $9.2 billion, compared with analyst estimates of $7.2 billion and $9.2 billion, according to Refinitiv data.

The company's services segment - which contains its App Store business - had sales of $18.3 billion in revenue, up 26%, compared with analyst expectations of $17.6 billion. Cook told Reuters that Apple now has 745 million paid subscribers to its platform, up from the 700 million it disclosed a quarter ago.

"Services were strong, and it shows the beauty and durability of software and services, as there are better margins and no supply issues, since software doesn't arrive on a container ship," said Hal Eddins, chief economist at Apple shareholder Capital Investment Companies.

Another bright spot in the company's results were its sales in China, which were up 83% to $14.6 billion.

The company said it returned $24 billion to shareholders during the quarter.