Apple survived the supply chain crisis safely, single-quarter revenue hit a record high, admits that it has invested in the Metaverse

Cook said that Apple is facing inflationary pressures. “I think everyone is seeing inflationary pressures. That’s what it is.”

Apple survived the supply chain crisis safely, single-quarter revenue hit a record high, admits that it has invested in the Metaverse

Focus on:

1 Apple’s revenue in the first fiscal quarter hit a record high, and its net profit exceeded market expectations;

2Except iPad, all product line revenue exceeded Wall Street expectations;

3. Over 1.8 billion activated devices and 785 million global subscribers to Apple services;

4 Supply chain crisis ameliorated, admits investment in Metaverse.

Tencent Technology News January 28 news, Apple reported a record quarterly revenue on Thursday, beating Wall Street expectations, indicating that the world’s most valuable company can weather a supply chain crisis caused by the epidemic and chip shortages.

In terms of business, Apple’s revenue in all product categories, except the iPad, exceeded Wall Street expectations, and total revenue hit a record high of $123.9 billion, an increase of 11% year-on-year. The following are Apple’s key performance for the first quarter of fiscal 2022 ending December 25, 2021:

Earnings per share: $2.10, up 25% year over year, beating Wall Street expectations of $1.89.

· Revenue: $123.9 billion, up 11% year over year, beating Wall Street expectations of $118.66 billion.

iPhone revenue: $71.63 billion, up 9% year-over-year, beating Wall Street expectations of $68.34 billion.

Services revenue: $19.52 billion, up 24% year-over-year, beating Wall Street expectations of $18.61 billion.

Other product revenue: $14.70 billion, up 13% year-over-year, beating Wall Street expectations of $14.59 billion.

Mac revenue: $10.85 billion, up 25% year-over-year, beating Wall Street expectations of $9.52 billion.

· iPad revenue: $7.25 billion, down 14% year-over-year, below Wall Street’s forecast of $8.18 billion.

· Gross profit margin: 43.8%, beating Wall Street expectations of 41.7%.

As in past quarters, Apple did not provide an outlook for its fiscal second quarter, which ended in March, in its latest earnings report. Apple has not provided guidance since the COVID-19 outbreak, citing uncertainty.

Financial report interpretation

Apple’s surprisingly strong financial numbers suggest that concerns about supply chain constraints are overblown. Apple Chief Executive Tim Cook warned late last year that shortages could cost the company more than $6 billion in lost revenue during the crucial holiday shopping season. But Apple’s latest quarterly earnings report suggests the tech giant has weathered the crisis and is benefiting from new products including the iPhone 13, Apple Watch Series 7 and a new Mac.

Apple’s results — and the market’s reaction — are being closely watched by investors. Amazon reported strong earnings and sales on Tuesday, beating analysts’ expectations. But the company’s stock is still penalized. Amazon shares initially fell more than 5% in after-hours trading that night, before rising more than 2% on the upbeat forecast. The dramatic turnaround underscores concerns among investors that the tech giant’s growth potential and valuations will reach new heights after a two-year rebound.

Investors are looking to Apple to give them peace of mind after the recent rout in U.S. stocks battered tech stocks. Over the past month, worries about slowing sales and imminent interest rate hikes have made the tech industry less attractive, and Apple itself has suffered. After the company’s market value topped $3 trillion in early January, Apple’s stock price fell with the broader market, and its current market value has fallen to about $2.6 trillion.

Apple’s flagship product, the iPhone’s first-quarter revenue of $71.63 billion, up 9 percent from a year earlier, beating Wall Street’s forecast of $68.34 billion. Cook spoke highly of the iPhone’s first-quarter sales performance. “It’s an achievement in a tight supply situation,” he said. The fiscal first quarter was also the first full quarter in which iPhone 13 sales began.The phone went on sale in September, weeks before the 2020 iPhone 12. Even though the iPhone 13 is considered a modest update, users who want to upgrade to 5G service still complain about the device.

“By the end of the first quarter, supply and demand were largely balanced, with strong shipments in China,” Bernstein analyst Toni Sacconaghi said in a research note ahead of the earnings release. Tight supply affected the iPhone The Series 13 and other new products, including products like the latest Mac and Apple Watch, have caused shipping delays by several weeks.

Against this backdrop, Apple’s fiscal first-quarter numbers came as a relief to investors. But not all was rosy, as iPad sales were lower than expected. The company has previously said that supply issues have hit iPads particularly hard. The iPad’s first-quarter revenue of $7.25 billion fell short of Wall Street’s forecast of $8.18 billion. Apple previously launched the new iPad Mini and gave its cheapest tablet a small update, but struggled to get enough supply to the market.

Apple Services raked in $19.52 billion in revenue in the first quarter, beating Wall Street expectations of $18.61 billion. The category grew 24% year over year on strong App Store, Apple Music and iCloud subscription sales. Apple said earlier this month that developers generate about $60 billion in revenue from the App Store throughout 2021, but did not provide data on the company’s App Store share.

Apple’s wearables, home and accessories division earned $14.7 billion in revenue in the fiscal first quarter, up 13% from a year earlier, beating Wall Street’s forecast of $14.59 billion. Products in this division include Apple Watch, Apple TV, AirPods, Beats headphones and other products. The category’s revenue growth was boosted by Apple’s launch of new AirPods earphones in late 2021. Still, the Apple Watch Series 7 has suffered from launch delays and severe shortages.

Apple’s Mac first-quarter revenue hit $10.85 billion, up 25 percent from a year earlier, beating Wall Street’s forecast of $9.52 billion. Apple released its new MacBook Pro in the fiscal first quarter to rave reviews from consumers and reviewers alike.

Over 1.8 billion activated devices

Apple has reached its highest-ever installed base, with more than 1.8 billion active devices used by customers worldwide, up 9 percent from 1.65 billion a year earlier. Cook said the total installed base of Apple devices has exceeded 1.8 billion.This is due to the increase in demand for Apple products during the epidemic. The number of Apple devices in use continues to grow. The change in active devices in 2019-2020 was 100 million, the increase in 2020-2021 was 150 million, and the total increased by another 150 million in the following year.

In addition, the number of global subscribers to Apple services also grew by 165 million to a total of 785 million. “We had quarterly records in every geographic region,” said Apple CFO Luca Maestri. “And then as I mentioned earlier, iCloud, music, video, advertising and payments services. historical record. So we did. It was better than expected at the beginning of the quarter.”

Crisis Improvement

Cook mentioned a forward-looking data point in an interview with the media on Thursday. “Our expectation for the fiscal second quarter is for a solid year-over-year increase in revenue,” he said. “We expect the second quarter to be less tight than the first quarter.”

Cook noted that Apple’s supply issues are improving. He said the first quarter was worse than the previous quarter in terms of supply challenges, but he expects the problem to improve in the second quarter. “Our biggest problem is chip supply, which is chip supply on the legacy node. We’re doing a good job at the frontier.” Frontier chips are the powerful processors at the heart of mobile phones, while “legacy node” chips are another less complex one section, running functions such as driving the display or managing power. Cook, however, was also cautious about when the industry’s long-term supply problems would disappear. “We didn’t predict that,” he said. “You have to know a lot of things to make accurate predictions, like what other people’s demand is like and what kind of supply we can squeeze out.”

Cook said that Apple is facing inflationary pressures. “I think everyone is seeing inflationary pressures. That’s what it is.”

Invest in the Metaverse

Cook mentioned the potential of the Metaverse on Thursday’s earnings call. Apple sees a lot of potential in the Metaverse, he said. He linked the Metaverse to the company’s current augmented reality/virtual reality efforts, adding that Apple is investing in the space.

Market rumors suggest that Apple will play a major role in the future of virtual reality — the Metaverse. During Apple’s earnings call, Cook confirmed that the company is interested in the development and has made an investment.Specifically, when asked about the Metaverse, Cook said, “We’re a company in the business of innovation. We have over 14,000 augmented reality apps in our app store.” But when asked about augmented reality/virtual reality or other projects in the field, that response was Cook’s usual response.

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