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CEO Tim Cook said the company’s supply chain woes are not as stringent for the quarter as against the September quarter.
American multinational technology company, Apple Inc (NASDAQ: AAPL) has released its performance report for the first fiscal quarter of 2022 ended December 25, 2021, and reported a revenue of $123.94 billion up 11% year over year, and significantly higher than what Refinitiv analysts were expecting which was pegged at $118.66 billion.
Apple’s Earnings Per Share (EPS) came in at $2.10 against the $1.89 that was estimated by analysts. The EPS shot up by 25% Year-Over-Year.
“This quarter’s record results were made possible by our most innovative lineup of products and services ever,” said Tim Cook, Apple’s CEO. “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.”
Apple’s performance was arguably hinged on the response of consumers around the world to its latest product lines. According to the company’s consolidated financial statement, all aspects of its business unit and product lines saw massive growth, except for iPad, which Cook said was severely impacted by supply chain issues.
“The very strong customer response to our recent launch of new products and services drove double-digit growth in revenue and earnings, and helped set an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “These record operating results allowed us to return nearly $27 billion to our shareholders during the quarter, as we maintain our target of reaching a net cash neutral position over time.”
Apple Revenue and Improving Supply Chain Constraints
CEO Tim Cook said the company’s supply chain woes are not as stringent for the quarter as against the September quarter. This reality showed itself across all of its product lines which saw significant upshot.
iPhone revenue, helped by the release of the iPhone 13 phones last year, was pegged at $71.63 billion as against $68.34 billion estimated, and up 9% year-over-year. Services revenue came in at $19.52 billion, up 24% year over year. Services revenue also beat analysts’ expectations pegged at $18.61. With other products revenue and Mac revenue also surpassing expectations, Apple’s Gross Margin grew significantly to 43.8% vs. 41.7% estimated.
With the supply chain challenges reducing, CEO Cook is optimistic the current quarter will come with even fewer troubles per chip and delivery supplies respectively.
“What we expect for the March quarter is solid year-over-year revenue growth,” Cook said. “And we expect supply constraints in the March quarter to be less than they were in the December quarter.”
In its characteristic manner, Apple did not provide any guidance for the current quarter or the year as a whole, and the company’s share is up 4.07% in the Pre-market to $165.70.