Apple Inc has been caught off guard by how many people want to buy its biggest smartphone, the iPhone 7 Plus, and the miscalculation may hit profits this holiday season.
The technology leader was not sure it could make as many units of the iPhone 7 Plus as consumers wanted in time for the Christmas shopping rush, Apple chief executive Tim Cook told analysts on Tuesday.
It would manage to make enough of the smaller iPhone 7s though, he said.
Demand was strong “particularly on the iPhone 7 Plus versus our fore cast going into the product launch”.
Apple issued a conservative out look on margins for the holiday quarter, 38% to 38.5%, versus expectations of nearly 39%.
It was not immediately clear if this was due the smartphone shortage.