• Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Dividend Stocks Report
No Result
View All Result
Home Stock News

Apple CEO Tim Cook: ‘Everybody’s seeing inflationary pressure’

by
January 28, 2022
in Stock News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Related Posts

IMF says risks to financial stability have increased, calls for vigilance

Awaiting possible indictment, Trump rallies in Waco and vows to ‘destroy the deep state’

Mississippi tornadoes kill 23, injure dozens overnight

Biden declares emergency as crews dig through storm wreckage

In this article

AAPL

Apple CEO Tim Cook attends the grand opening event of the new Apple store at The Grove on November 19, 2021 in Los Angeles, California.
Mario Tama | Getty Images

Apple CEO Tim Cook said the company is seeing inflationary pressure in an interview with CNBC’s Julia Boorstin on Thursday as the company reported nearly $124 billion in sales in its December quarter.

“We try to price our products for the value that we deliver and we are seeing inflationary pressure,” Cook said. “I think everybody’s seeing inflationary pressure. There’s no two ways about that.”

The observation from the head of the country’s most valuable company comes as the Biden administration and Federal Reserve grapple with questions about how to tame elevated inflation and whether to raise interest rates.

The consumer price index, an metric measuring price increases across a basket of consumer goods, rose 7% in December from a year earlier, its fastest annual pace in nearly 40 years.

On a earnings call with analysts, Cook expanded on how inflation is affecting Apple’s business and gave an example of shipping costs.

“We’re seeing inflation and it’s factored into our gross margin and opex that [Apple CFO] Luca [Maestri] reviewed with you earlier,” Cook said. “Logistics, as I’ve mentioned on a previous call, is very elevated in terms of the cost of moving things around.”

Cook said that he hoped the increased costs would be temporary.

“I would hope that at least a portion of that is transitory, but the world has changed and we’ll see,” Cook said.

Inflation hasn’t hurt Apple’s business, which reported rising gross margins in the December quarter, and Apple hasn’t raised prices in response to inflation in the United States. Cook didn’t rule out the possibility of price increases in his interview with CNBC nor on Apple’s earnings call.

Cook also said he expects supply chain constraints, which are contributing to inflation, to ease for Apple in the coming months.

In September, Nikkei Asia reported that chip prices were rising at TSMC, Apple’s chip manufacturer, and that technology companies could decide to pass the increases to customers. On Thursday, Cook said that “we’re doing okay on the leading edge stuff,” referring to supply of the processors that TSMC manufactures.

Apple doesn’t often raise prices after products are released, although it sometimes does so in response to regional economic conditions. For example, last year, Apple raised prices at its online Apple store in Turkey as the lira fell in value and inflation in the country hit a two-decade high.

However, Apple sometimes raises prices compared to last year’s models when introducing new iPhones and other devices in the fall.

Next Post

Lucid stock falls after rival Tesla warns about supply chain

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Stock News

Mississippi tornadoes kill 23, injure dozens overnight

by
March 26, 2023
0

Debris covers a damaged structure in Rolling Fork, Miss,. on Saturday, March 25, 2023. Powerful tornadoes tore through the Deep...

Read more

Mississippi tornadoes kill 23, injure dozens overnight

Awaiting possible indictment, Trump rallies in Waco and vows to ‘destroy the deep state’

IMF says risks to financial stability have increased, calls for vigilance

Biden declares emergency as crews dig through storm wreckage

Top 5 China Stocks To Buy And Watch: 3 Internet Giants Are Actionable

The Stock Market Hopes the Worst Is Over. Experience Says It’s Not.

Load More

All rights reserved by www.dividendstocksreport.net

  • Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Home
  • Stock News
  • Privacy Policy
  • Email Whitelisting

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.