Apple sees bigger supply problems after strong start to year

Apple's overall second-quarter revenue was $97.3 billion

Apple forecast bigger problems as Covid-19 lockdowns snarl production and demand in China, the war in Ukraine dents sales and growth slows in services, which the iPhone maker sees as its engine for expansion.

Shares were slightly down in early Friday trade, hours after executives laid out their glum outlook on a conference call. The news outweighed record profit and sales for Apple’s fiscal second quarter, which ended in March.

Chief Financial Officer Luca Maestri warned in an interview that the war in Ukraine, which led Apple to stop sales in Russia, would cut sales more deeply in the fiscal third quarter.