Technology giant Apple has released its quarterly reports, and has actually celebrated one of its best quarters in 46 years. The company reported revenues of about $ 97.3 billion (compared to estimates of $ 94 billion). Earnings per share were $ 1.52, 9 cents above analysts’ expectations. Simultaneously with the publication of the results, Apple announced that it would repurchase its shares for a huge amount of about $ 90 billion.
This announcement from the company came shortly after the release of one of the best quarters in its 46-year history in terms of overall revenue, in fact the third best in Apple’s history, but one of the slowest in growth since the epidemic began. In practice, according to Apple, this is a peak in the non-holiday quarter.
Supply chain issues are still affecting tech giants
However, Apple CFO Luca Mastri warned during the conference call that the renewed outbreak of the corona in China threatens to delay its sales by between $ 4-8 billion in the next quarter to be reported. Apple has suppliers and factories in China facing government closures to control On the Corona outbreak there. “Supply constraints caused by Corona-related disruptions and silicon shortages in the industry affect our ability to meet customer requirements for our products,” said Mastri.
This news sent the company’s stock to a roller coaster in late trading: initially the stock recorded a 2% rise, but then a decline of more than 5%, which later stabilized at just over 3%. Investors want to see in both the company’s reports and insights what Apple will report and how it sees the current situation against the backdrop of inflation, the corona closures and the war between Russia and Ukraine.
The company’s biggest source of revenue is still the iPhones
These results reflected the company’s ability in the king of this period to overcome supply chain problems that troubled many in the industry, and allowed the company to sell more iPhones than expected on Wall Street (unlike the previous sovereign, which Apple reported $ 6 billion in damage due to chip shortages). IPhone sales this quarter were about $ 50.57 billion, up 5.5% from the same quarter last year. Analysts had expected about $ 47.9 billion.
It is important to note that the company’s flagship device, the iPhone 13, was less appealing than its younger brother, the iPhone 12, mainly because the new model had no dramatic update. The iPhone 13 received a few small upgrades and mostly maintained a previous generation product line. What’s more – the company launched in March the iPhone SE 2022, a low-cost iPhone, and it contributed to sales in the last quarter. Users have shown that they are interested in purchasing a cheaper device with good capabilities.
The ac Studio was a surprise, the iPads and watches less so
Since Apple moved to its standalone processors, customers are much more excited about Apple devices. The Mac generated revenue of $ 10.4 billion in the quarter, most notably Apple’s grandiose launch in the last quarter of Mac Studio. This is the company’s desktop computer with the highest capabilities. However, it is important to note that many orders of this computer have been delayed due to shortage of supply chain and high demand. Alongside this PC, customers have also been waiting for the new MacBook Pro, but they too are facing delivery issues.
The iPad division brought in $ 7.65 billion to Apple, down 2.1% from the same quarter last year. Despite all the new models that came out that were supposed to suit all different uses, the segment is less lucrative for Apple. At the same time, in the category of wearable products, home and accessories missed the assessments. The Apple segment recorded $ 8.8 billion in the last quarter, with estimates at $ 9 billion.
Apple does not want to be just iPhones and computers, it wants to be the complete package
Revenue from services increased by 17.3% compared to the same quarter last year and stood at about $ 19.8 billion, slightly above forecasts. In the conference call, of course, Tim Cook mentioned the company’s history at the Oscars: “CODA,” a Sean Hyder film that was distributed exclusively on Apple’s streaming service won the Best Picture award, making it the first streaming film to win the award. Cook used this to point out how the company services that are not necessarily the iPhone make the whole company more attractive. “The successful combination of hardware, software and services is at the heart of our work and philosophy at Apple,” he said.
And this is exactly what Apple wants – to give users a complete experience of all products. Thus they are trying to convince the users that Apple’s ecosystem is the most successful and there is no reason to go in the other categories to its competitors.