# Apple Misses Q4 Revenue Expectations
Apple, known for its consistent profitability in the tech industry and stock market, faced challenges due to supply constraints and chip shortages. In their Q4 earnings report, they fell short of Wall Street’s revenue expectations.
Apple CEO Tim Cook attributed the shortfall to supply constraints, estimating around $6 billion in losses. These constraints were a result of industry-wide chip shortages and manufacturing disruptions in Southeast Asia caused by COVID-19.
Despite this setback, sales of Apple’s key products like iPhones showed year-over-year growth, though not meeting Wall Street’s hopes. Cook anticipates these supply challenges to worsen in the upcoming holiday season as tech companies rush to secure necessary components.
Despite the hurdles, Cook remains optimistic about Apple’s profitability during the holiday season. Apple’s subscription-based services, including Apple Music and the App Store, continue to generate significant revenue, with around 745 million paid subscriptions currently in use.
The company has witnessed substantial growth in subscriptions, increasing by 160 million year-on-year and fivefold over five years, signaling a successful growth trajectory for Apple’s service offerings.
