Apple Sets Records for Revenue and Profit- Stock Sinks

Apple reported its 4th quarter financial results today and while it was an amazing quarter despite the headwinds of the continuing pandemic and supply chain challenges. For the September quarter, Apple posted revenue of $83.4 billion and net quarterly profit of $20.6 billion, or $1.24 per diluted share, compared to revenue of $64.7 billion and net quarterly profit of $12.7 billion, or $0.73 per diluted share, in the year-ago quarter The Apple board declared a cash dividend of $0.22 per share of the company’s common stock. The payout will be made on November 11 to shareholders of record as of November 8.

Apple’s CEO Tim Cook estimated that the company lost about $6 billion in sales due to supply chain shortages. “We had a very strong performance despite larger than expected supply constraints, which we estimate to be around $6 billion,” said Cook. “The supply constraints were driven by the industry wide chip shortages that have been talked about a lot, and COVID-related manufacturing disruptions in Southeast Asia.”

Apple’s 83.4billion in revenue fella tad short of some analyst’s expectations of $84.85 billion but the profit was right in line with expectations at $1.24 a share. Nevertheless, AAPL stock got punished in after-hours trading.  Apple’s revenue figure was a September quarter record and Mac and Services both set all-time records.

For the full fiscal year, Apple demolished company records with $365.8 billion in sales and $94.7 billion in net income, up from $274.5 billion in sales and $57.4 billion in net income for fiscal 2020. this during a worldwide pandemic and significant supply shortages. This is remarkable performance and yet another chapter in the greatest American business story. If these so-called analysts cannot see this they might wanna consider another career.

Each of Apple’s business sectors preformed well.  iPhone was up year-over-year by double digits with $38.868 billion (vs. $ $26.444 YOY), Mac posted $9.178 billion vs. $9.032 last year.  iPad showed strong growth with 8.252 billion up from $6.67 billion last year.  Wearables,etc.  posted $8.785 billion versus $7.876 last year and Services not only beat expectations at $18.277 billion but crushed last year’s number of $14,549 billion.  Doesn’t sound like there is anything to worry about with Apple’d numbers.  With Tim Cook’s estimate of $6 billion in lost sales due to unprecedented challenges in the supply chain due to the pandemic these are incredible results!

“Our record September quarter results capped off a remarkable fiscal year of strong double-digit growth, during which we set new revenue records in all of our geographic segments and product categories in spite of continued uncertainty in the macro environment,” said Luca Maestri, Apple’s CFO, in a statement. “The combination of our record sales performance, unmatched customer loyalty, and strength of our ecosystem drove our active installed base of devices to a new all-time high. During the September quarter, we returned over $24 billion to our shareholders, as we continue to make progress toward our goal of reaching a net cash neutral position over time.”

Congratulations to the entire Apple team on a great quarter!