Even as it cautions consumers against continued supply constraints and inflation, Apple today reported the best March quarter in its history. The company generated revenue of $97.3 billion in Q2, up 9 percent from the year-ago quarter. It was a profit of $25 billion with earnings per share of $1.52.
Apple set March quarter revenue records for its iPhone, Mac and Wearables/Home/Accessories divisions. Various services of Apple Reached a new high of 825 million subscribers, And the Mac continues to grow. “The last seven Mac quarters have now been the top seven quarters in Mac history,” Apple CEO Tim Cook told CNBC. But the second quarter saw a slowdown in iPad sales, which were slightly down year over year. Cook attributed this to “very significant supply constraints”.
The growth in iPhone revenue came even as Apple noted that Q2 of the year ago saw very strong demand for the iPhone, with the iPhone 12 series launching a little later than usual. New products released by Apple during the March quarter included the third-gen iPhone SE, the green colors of the iPhone 13 and iPhone 13 Pro, the powerful Mac Studio desktop and 5K studio display external monitors.
In January, the company said it expects supply chain challenges to ease somewhat during the March quarter. But with China under strict lockdown to limit the spread of COVID-19, supply chain issues could become a bigger problem in the next few months.
Apple’s Mac lineup is currently bearing the brunt of shipping delays. The estimated delivery date for the new order for the recently launched Mac Studio with the M1 Ultra chip is by the end of July. Several 14- and 16-inch MacBook Pro configurations will see customers waiting until June or later to receive orders placed today.
Apple will preview the next major updates for iOS, iPadOS, macOS, watchOS and tvOS at its Worldwide Developers Conference (WWDC) in June. Except for a small group of guests who will be invited to Apple’s premises, the conference will be largely virtual – as has been the case for the past two years.
Beyond new products and software, Apple is facing challenges to its broad control over the App Store and the iPhone software ecosystem. EU law may compel the company to allow sideloading and third-party software stores. It has also agreed to allow third-party payment methods for very select categories like dating apps in some countries.