Apple announced on Thursday that the company’s revenue grew nearly 9% year over year for the quarter ended March, beating strong growth and defying expectations. This is despite continued supply constraints and uncertainties leading to demand for high-end smartphones and gadgets.
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NEW YORK, NEW YORK – APRIL 18: Apple Store signage is seen at Grand Central Station on April 18, 2022 in New York City. Apple Store employees at the Grand Central Terminal store have begun the process of unionizing.
Among its many services, the tech giant reported having a new 825 million subscribers, which is an increase of 165 million from the previous year. Their net profit also increased 6% to $25 billion and total revenue to $97.3 billion.
This growth is attributed to iPhone sales as Apple noted that it faced strong demand due to the launch of the iPhone 12 series in Q2 of last year. The release of new products was beneficial such as the third-gen iPhone SE, iPhone 13 and iPhone 13 Pro’s green, Mac Studio desktop and 5K studio display external monitors.
Meanwhile, demand for Macs is partially increasing. Apple CEO Tim Cook said in a statement shared by CNBC that “the last seven Mac quarters have now been the top seven quarters ever in Mac history.”
However, iPad sales also declined in the second quarter, down slightly from last year, and Cook attributed this to issues with his own supply constraints.
Last January, Apple reported that they were anticipating that supply chain issues would affect their March revenue. With China once again enforcing a strict lockdown to regulate COVID-19, the company is expecting these supply chain challenges to hit them further in the coming months.
One of their main challenges is shipping delays for the Mac lineup, with the Mac Studio’s new order featuring the M1 Ultra chip with an estimated delivery date of late July, as reported by The Verge. Their 14- and 16-inch MacBook Pro configurations are expected to reach customers by June or later months.
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“Strong Customer Feedback”
“This quarter’s record results are a testament to Apple’s relentless focus on innovation and our ability to create the best products and services in the world,” Cook said.
Cook said he was pleased to see what he described as “strong customer feedback” for Apple’s products. He also said that they are making progress to become carbon neutral in their supply chains and all of their products by 2030.
Here’s a breakdown of Apple’s records compared to their forecasts, as reported by CNBC.
- EPS: $1.52 vs. $1.43 Forecast
- Revenue: $97.28 billion versus $93.89 billion predicted, up 8.59% year-on-year
- iPhone Revenue: $50.57 billion versus $47.88 billion estimated, 5.5% year-over-year growth
- Service Revenue: $19.82 billion versus $19.72 billion forecast, up 17.28% year-on-year
- Other Product Revenue: $8.81 billion versus $9.05 billion predicted, up 12.37% year-on-year
- Mac Revenue: $10.44 billion versus $9.25 billion estimated, 14.73% year-on-year growth
- iPad Revenue: $7.65 billion versus $7.14 billion forecast, down 1.92% year-on-year
- gross margin: 43.7% vs 43.1% estimated
At the time of writing, Apple has not yet provided any forecast for the current quarter. In fact, Apple has stopped issuing official revenue guidance since the COVID-19 pandemic began in February 2020, citing uncertainty.
Meanwhile, Apple’s board of directors declared a cash dividend of $0.23 per share of the company’s common stock, an increase of 5 percent.
The dividend will be payable to shareholders of record on May 12 as the business closes on May 9. Additionally, the Board of Directors has authorized $90 billion for its current share repurchase program.
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Written by Joaquin Victor Tackles
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