The folks need Apple merchandise. While Apple can be very happy to oblige, it may’t, as a result of there’s a world provide chain disaster. The crunch is costing the corporate billions in misplaced gross sales and holding its cash machine, the iPhone, at arm’s size from patrons.

Apple CEO Tim Cook on Thursday told CNBC that offer chain constraints and covid-19 manufacturing disruptions had value the corporate round $6 billion in misplaced gross sales. Cook made the feedback in mild of the publication of the firm’s fourth quarter financial results for the fiscal 12 months, which missed analysts’ earnings and income estimates for the primary time in years.

That doesn’t imply that Apple didn’t have a profitable quarter. It earned $83.4 billion in income, a 29% improve 12 months over 12 months, and grew in all markets and product classes. The firm simply didn’t carry out as anticipated, falling wanting the roughly $85 billion in income for the quarter that analysts projected.

“We had a very strong performance despite larger than expected supply constraints, which we estimate to be around $6 billion,” Cook stated, in accordance with CNBC. “The supply constraints were driven by the industry wide chip shortages that have been talked about a lot, and covid-related manufacturing disruptions in Southeast Asia.”

On a name with analysts, Cook stated that the covid-related manufacturing disruptions had improved, however the chip shortages stay. The provide constraints for chips are associated to chips on legacy nodes, he added.

The missed gross sales alternatives introduced on by the availability crunch—which has affected the iPhone 13 in addition to older merchandise such because the  iPhone 11, iPhone 12, 2021 iMac, and Mac Pro, amongst others—will solely worsen in the course of the vacation season, Apple CFO Luca Maestri warned on the decision, the Associated Press reported.

Despite this, Apple expects the December quarter to ship its highest revenue in firm historical past. This may point out that Apple is seeing excessive demand for the iPhone 13 and its different just lately introduced merchandise, such because the iPad mini, Apple Watch Series 7, third-generation AirPods, and MacE-book Pro.

The firm’s fourth quarter monetary outcomes additionally supplied extra perception into the efficiency of the iPhone, Apple’s golden goose. It is perhaps arduous to consider, however iPhone gross sales elevated to $38.9 billion, a 47% improve 12 months over 12 months. In different phrases, the corporate has managed to create a cult of iPhone stans that improve steadily sufficient to make it tons of cash.

Nonetheless, Cook stated that the chip scarcity is stopping Apple from promoting as many iPhones as it could like.

“Demand remains very robust,” he stated.