Apple announced on Thursday that the company's revenue increased nearly 9% annually in the quarter ending in March, exemplifying strong growth and defying expectations. This is despite continued supply constraints and uncertainties for the demand of high-end smartphones and gadgets.
In its multiple services, the tech giant reported having a new 825 million subscribers, which is 165 million up from last year. Their net profits also recorded a 6% increase to $25 billion and overall revenues amassed a total of $97.3 billion.
This increase is heavily attributed to the sales of iPhone since Apple noted that last year's Q2 encountered strong demand due to the launching of iPhone 12 series. The release of new products were beneficial such as the third-gen iPhone SE, green colors of the iPhone 13 and iPhone 13 Pro, the Mac Studio desktop, and the 5K Studio Display external monitor.
Meanwhile, the demand for Mac has been particuarly surging. 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 the history of the Mac."
However, the second quarter also recorded a downtrend for iPad sales, which were down slightly from last year and Cook attributed this to issues on their supply constraints.
Last January, Apple reported that they were anticipating that issues on supply chain will affect their March revenue. With China imposing strict lockdowns to once again regulate COVID-19, the company is expecting that these supply chain challenges might affect them further in the coming months.
One of their main challenges is the shipping delays for the Mac lineup, new orders of the Mac Studio featuring the M1 Ultra chip have 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 until June or later months.
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"Strong Customer Response"
"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 that he was delighted to witness what he has described as a "strong customer response" to Apple's products. He also added that they are making progress to become carbon neutral across their supply chains and all of their products by 2030.
Here is a breakdown of Apple's records versus their estimated forecasts, reported by CNBC.
- EPS: $1.52 vs. $1.43 forecast
- Revenue: $97.28 billion vs. $93.89 billion predicted, a 8.59% increase year-over-year
- iPhone revenue: $50.57 billion vs. $47.88 billion estimated, 5.5% increase year-over-year
- Services revenue: $19.82 billion vs. $19.72 billion forecasted, 17.28% increase year-over-tear
- Other Products revenue: $8.81 billion vs. $9.05 billion predicted, 12.37% increase year-over-year
- Mac revenue: $10.44 billion vs. $9.25 billion estimated, 14.73% increase year-over-year
- iPad revenue: $7.65 billion vs. $7.14 billion forecasted, 1.92% decrease year-over-year
- Gross margin: 43.7% vs. 43.1% predicted
As of writing, Apple has not provided any forecast yet for the current quarter. In fact, Apple has stopped releasing official revenue guidance citing uncertainty since the COVID-19 pandemic rolled in February 2020.
Meanwhile, Apple's board of directors has declared a cash dividend of $0.23 per share of the Company's common stock, which is an increase of 5 percent.
The dividend will be payable on May 12 to shareholders of record since the closing of business will be on May 9. Additionally, the board of directors has authorized a $90 billion up to their current share repurchase program.
This article is owned by Tech Times
Written by Joaquin Victor Tacla
