By Dean Seal


Shares of Apple Inc. fell 2.7% to $159.16 in pre-market trading Friday after the company warned investors that a resurgence of Covid-19 in China could hinder sales by as much as $8 billion this quarter.

The note of caution arrived on the heels of the iPhone maker delivering some of its best quarterly results ever, in which revenue beat analyst estimates by rising 9% to $97.3 billion while earnings rose to $1.52, up from $1.40 a year earlier and beating analyst forecasts by 10 cents.

While the Cupertino, Calif.-based company was able to navigate supply-chain challenges that have been roiling the tech and auto industries last quarter, it could face new challenges as areas around Shanghai, where Apple has many suppliers, face government lockdowns aimed at curbing Covid-19 infections.

The tech giant is also facing supply constraints caused by industrywide silicon shortages, according to Chief Financial Officer Luca Maestri, who said these new challenges would hurt second-quarter revenue by between $4 million and $8 million.

Piper Sandler maintained Apple at overweight but cut its price target to $195.


Write to Dean Seal at dean.seal@wsj.com


(END) Dow Jones Newswires

04-29-22 0703ET