Apple roundup: Foxconn profit slips amid supply shortage, Epic backs UK antitrust probe

Mar. 30, 2021 7:47 AM ETApple Inc. (AAPL)AAPL, HNHAFBy: Brandy Betz, SA News Editor5 Comments
  • During its fourth quarter earnings report, Apple (NASDAQ:AAPL) assembler Foxconn (OTCPK:HNHAF) warns that a "materials shortage" in the consumer electronics supply chain could stretch into next year.
  • But Foxconn says the shortage should hit less than 10% of customer orders. The company didn't specify the nature of the supply chain issue, but it's likely the global semiconductor shortage that has spread out from the automotive industry to smartphones.
  • Foxconn reported Q4 net profits of T$45.97B, down 4% on the year and below the T$50.89B consensus. The pandemic put pressure on the company's margins, but strong smartphone sales helped offset some of the headwind.
  • Separately, Fortnite developer Epic Games has submitted a complaint backing the UK Competition and Markets Authority's antitrust probe of Apple, which was launched after developer complaints about App Store terms and conditions.
  • Epic and Apple are fighting a legal battle around Apple's "app tax" and Epic's attempt to get around the tax by creating its own in-app payment system. Apple responded by pulling Fortnite from the App Store.
  • Apple shares are down nearly 1% pre-market.
  • Post updated to include additional Foxconn earnings information.
  • The U.S. Epic-Apple trial kicks off on May 3.

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