Apple Smashes The Street
The first headline is that Apple Mac sales exceeded $10 Billion for the first time ever! Apple attributes that increase and strong sales to the Apple M1 chip. Apple’s first quarter earnings are out and they are spectacular with growth in all sectors regardless of chip shortages and supply chain issues. Apple posted $123.9 billion in revenue for the holiday quarter, first quarter of 2022. This broke the quarterly record for the most revenue ever and completely smashed analyst’s predictions. Tim Cook, Apple’s CEO also announced that Apple now has over 1.8 billion devices in service worldwide!
“This quarter’s record results were made possible by our most innovative lineup of products and services ever,” said Cook. “We are gratified to see the response from customers around the world at a time when staying connected has never been more important. We are doing all we can to help build a better world — making progress toward our goal of becoming carbon neutral across our supply chain and products by 2030, and pushing forward with our work in education and racial equity and justice.”
- iPhone: $71.6 billion, up from $65.5 billion in the year-ago quarter
- Mac: $10.8 billion, up from $8.6 billion in the year-ago quarter
- Wearables, Home, and Accessories: $14.7 billion, up from $12.9 billion in the year-ago quarter
- Services: $19.5 billion, up from $15.7 billion in the year-ago quarter – the App Store was highlighted for generating over $260 billion for developers (and more for Apple!)
The only business sector that did not set a record was iPad revenue which checked in at $7.2 billion for the quarter, down from $8.4 billion in the year-ago quarter. Tim Cook said supply constraints hampered iPad sales most of all and we saw that throughout the period with scant supply. He predicted those constraints would ease in the March quarter.
Gross margin for the quarter of $54.2 billion is up from one year ago’s figure of $44.3 billion, and operating expenses of $12.7 billion are up from the year-ago $10.8 billion. Net Profit is pegged at $34.6 billion, also up from $28.8 billion in the same quarter last year.
Apple is not providing specific guidance for the next quarter but did say that the company expects an all-time March company revenue record despite supply constraints. The Apple Board of Directors declared a $0.22 dividend for shareholders of record on February 7th.
These are simply amazing results posted in the middle of a continuing worldwide pandemic, a chip shortage and other supply constraints. Great work and congratulations to the entire Apple team!
