00:00 Speaker A
Let’s start with Apple, that outlook coming up short.
00:03 Speaker B
Yeah, I mean, obviously this is it’s it’s it’s twofold actually. It’s it’s the memory shortage obviously, you know, Tim Cook said uh that they had a little bit of kind of armor uh against it when they had kind of brought in shipments. So basically they were bringing in earlier uh memory chips or memory chips they had previously purchased, uh putting them into devices and then having them shipped in. Uh that was a way for them to protect against having to raise prices
00:32 Speaker B
uh and some of this shock. But that supply is dwindling obviously. Uh he kind of made reference to that. They’re going to have less flexibility going forward. And so we’ll see a greater impact and I think that’s, you know, that’s I think that’s primarily what the the the street is reacting to now is that lack of flexibility. Uh, the other thing though is, it’s not just a memory uh for Apple, it’s also their SOCs, their system on chips, uh, that’s basically their processors.
00:54 Speaker B
Those are also supply constraint because so many companies are fighting to build out processors at this point. And so, you know, Tim Cook has referenced this in prior earnings reports. Obviously, this is his last one, as he said, that’s wild to say, but, uh, he kind of had to give this downer news where, uh, the company is facing constraints on these system on chips, uh, as well as on these memory chips. Uh, for Apple, you know, obviously, it didn’t have that huge exposure to AI that we’d seen from, you know, Microsoft, Google, where they just kind of gone up and down and up and down and up and down, uh, or the, you know, processor companies or the memory companies.
01:26 Speaker B
They’ve been insulated and this feels as though it’s, you know, one of the big shocks from AI to Apple. It’s just it’s tangentially related.
