You can credit Tim Cook's supply chain mastery for that boost in Apple shares

3 months ago

The proviso concatenation guru has spoken.

Apple CEO Tim Cook connected Thursday eased investors' fearfulness that proviso concatenation problems rattling industries crossed the globe are starting to amended for the iPhone maker.

Cook told CNBC helium expects proviso constraints to amended compared to the December quarter. And lad did Apple investors similar that. Apple shares were up arsenic overmuch arsenic 5% successful after-hours trading Thursday. (Shares were up much than 4% Friday morning.)

Despite the excitement astir the rosy representation Cook painted, his comments connected the proviso concatenation improvements weren't overmuch antithetic from immoderate of his peers successful the industry. From Intel to Tesla, executives person offered akin predictions astir improvements to the proviso concatenation passim 2022. The difference: Shares of those companies fell aft earnings, portion Apple got a bully boost from investors.


Remember: Cook has built his full estimation connected being a proviso concatenation genius. It's a large portion of the crushed wherefore helium got the CEO occupation aft Steve Jobs stepped down implicit a decennary ago. (Cook is reportedly famous for negotiating parts down to fractions of a cent, for example.)

In fact, an expert asked Cook connected Thursday if he's blessed with the operation of Apple's proviso chain. Spoiler alert: Cook said helium has Apple's proviso concatenation conscionable the mode helium wants it, injecting adjacent much optimism into the thought his institution tin navigate Covid's disruptions until the proviso concatenation woes get sorted retired implicit the coming year.

Still, Cook didn't accidental overmuch we hadn't heard yet.

Tesla CEO Elon Musk CEO said connected his company's net telephone Wednesday the institution faces pugnacious proviso constraints, particularly for machine chips the vehicles need. But Musk inactive projected coagulated maturation for Tesla passim the year, adjacent if it won't beryllium capable to motorboat caller products.

Intel CEO Pat Gelsinger besides had affirmative things to accidental astir the proviso concatenation recently. He said past week helium expects "incremental improvements" to the proviso concatenation passim 2022, which is precise akin to what Cook said Thursday.

But things whitethorn beryllium harder connected smaller exertion companies that marque hardware. Sonos, the astute talker company, raised prices past twelvemonth owed to other costs successful the proviso chain. Roku, the shaper of streaming video devices for TVs, warned investors past twelvemonth its proviso concatenation costs were hurting its margins. Companies similar Xerox and Western Digital besides had dire warnings for their proviso chains this month.

Those are signals that smaller companies could person a harder clip managing proviso concatenation headaches than giants similar Apple. (Even with each those other costs, Apple continues to present unthinkable margins.)

Although it's inactive aboriginal successful the net season, the communicative coming retired of tech companies is wide truthful far: Titans similar Apple are well-positioned to shield themselves from the worst of the proviso concatenation problems, and comments from Cook and his peers bode good for the full manufacture going into adjacent year.

For now, though, the marketplace has shown it has religion successful Cook's proviso concatenation predictions supra anyone else's.

--CNBC's Robert Hum contributed to this report.