Despite that Apple’s Q1 revenue managed to beat the analysts’ estimates, as usual, CEO Tim Cook warned that Apple is seeing some negative trends halfway into the current quarter, which could shave $4-$8 billion off its revenue.

The main factors that would contribute to Apple’s financial underperformance this quarter would be the COVID-19 lockdowns in China that affect Apple’s assembly lines, the loss of the Russian market due to sanctions, the currency exchange misallocations, the rising inflation rate that leaves buyers with less and less disposable income, and the general component supply shortages that have been plaguing the industry for a good while now.

While the rest of the challenges are pretty self-explanatory, the rising power of the dollar and its higher exchange rate towards local currencies is a new twist. One Apple analyst – Chris Caso of Raymond James – thinks that Apple will be forced to raise the iPhone 14 prices abroad as a response to the weaker exchange rates:





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