Adam Kos Apple has officially announced its earnings for the 1st fiscal quarter of 2022, which includes the months of October, November and December last year. This is the most important time of the year, because Christmas falls in it, and therefore also the biggest sales. What were the 5 most interesting things this announcement brought?
$123,95 billion
Analysts had high expectations and predicted record sales and profit for the company. But Apple itself warned against this information because it assumed that it would be negatively affected by the supply cuts. In the end, he held up fairly well. It reported record sales of $123,95 billion, an 11% year-on-year increase. The company then reported a profit of $34,6 billion and earnings per share of $2,10. Analysts assumed, that the growth will be 7% and the sales will be 119,3 billion dollars.
It could be interest you
Vratislav Holub 1,8 billion active devices
During the company's earnings call, CEO Tim Cook and CFO Luca Maestri provided an update on the number of active Apple devices worldwide. The company's latest number of devices in use is said to be 1,8 billion, and if Apple manages to grow a bit more in 2022 than it has in the past few years, it could surpass the 2 billion active device mark this year. According to the US Census Bureau as of 1/11/2021, 7,9 billion people lived on Earth. So it can be said that almost every fourth person uses a product of the company.
Gallery
The rise of Macs, the fall of iPads
Apple has not reported unit sales of any of its products for a long time, but does report a breakdown of sales by their categories. Accordingly, in the 1st fiscal quarter of 2022, it is clear that even though the iPhone 12 was delayed, the 13 models, which arrived on time, did not significantly beat them in sales. They grew "only" by 9%. But Mac computers did extremely well, shooting up a quarter of their sales, users are also starting to spend more on services, which grew by 24%. However, iPads experienced a fundamental fall.
Breakdown of revenue by product category:
- iPhone: $71,63 billion (up 9% year-over-year)
- Mac: $10,85 billion (up 25% year-over-year)
- iPad: $7,25 billion (down 14% year-over-year)
- Wearables, home and accessories: $14,70 billion (up 13% year-over-year)
- Services: $19,5 billion (up 24% year-on-year)
Supply cuts cost Apple $6 billion
In an interview for Financial Times Luca Maestri said supply cuts during the pre-Christmas season cost Apple more than $6 billion. This is the calculation of losses, i.e. the amount by which sales would be higher, which could not be achieved because there was nothing to sell to customers. The company expects losses to be present in Q2 2022 as well, although they should already be lower. After all, it is logical, because the sales themselves are also lower.
Maestri also specified that Apple actually expects its revenue growth rate to slow sharply in Q2 2022 compared to Q1 2022 due to a tough year-over-year comparison. This is due to the later launch of the iPhone 12 series in 2020, which has shifted some of this demand to the second quarter of 2021.
It could be interest you
There is great potential in the metaverse
During Apple's Q1 2022 earnings call with analysts and investors, Apple CEO Tim Cook also addressed the idea of a metaverse. In response to a question from Morgan Stanley analyst Katy Huberty, he explained that the company sees "really big potential in this space."
Gallery
"We are a company that does business in the field of innovation. We are constantly exploring new and emerging technologies and this is an area of great interest to us. We have 14 ARKit-powered apps in the App Store that are providing incredible AR experiences to millions of people today. We see great potential in this space and are investing our resources accordingly,” Cook said. In response to another question moments later, he explained that when Apple decides when to enter a new market, it looks at the intersection of hardware, software and services. While he didn't mention any specifics, he did say that there are simply areas that Apple is "more than interested in."
This is the calculation of losses, i.e. the amount by which sales would be higher, which could not be achieved because there was nothing to sell to customers.
The fact that sales would be higher is definitely not a loss. This is not very well written...