Apple ends the quarter with record revenue of 1239 billion

Apple ends the quarter with record revenue of $123.9 billion, up 11%

From a financial standpoint, the past quarter was Apple’s best in history, as the company’s revenue grew 11% to a record $123.9 billion, with nearly 58% of Apple’s revenue coming from smartphone sales Direction Revenue grew 9%, but the growth leaders in terms of growth were Mac computers (+25%) and services (+24%).

Image source: Apple

Image source: Apple

Ongoing macroeconomic uncertainty prevented management from providing a clear first-quarter revenue guidance, but in its most recent quarter, the company’s revenue beat analysts’ expectations of about $119 billion. The company’s profit margin also came in above expectations in its most recent quarter of analysts: 8 vs. 41.7%. Against this backdrop, Apple shares gained 5% after the close.

The launch of the iPhone earned Apple 9% more in the fourth quarter than a year earlier — $71.6 billion — very decent momentum, according to management, given the severe component shortages in the market and the amount of revenue itself was a record. The number of active devices in the Apple ecosystem also hit another high at 1.8 billion. Such sales momentum was made possible by the launch of the iPhone 13 family.

iPads slid core sales down 14% to $7.25 billion, but that’s more indicative of component shortages than low demand. Revenue from sales of Mac computers rose by a quarter to $10.85 billion. Mac models based on Apple’s proprietary processors are very popular, they are now the main revenue in the segment. In December, the number of consumers who switched to M1-series processors hit a record high.

Image source: Apple

Image source: Apple

A comparable revenue increase of 24% to $19.52 billion was observed towards Services. The services segment is also Apple’s most profitable business, with a profit margin of 72.4% versus 38.4% for products. All other products increased sales 13% to $14.7 billion, including Watch smartwatches and AirPods, among others. In this direction, the historical record in terms of earnings has also been updated.

According to CNBCIn an interview with the broadcaster, Apple CEO Tim Cook (Tim Cook) could not resist the overall forecast for the first quarter. According to him, sales in the current quarter should increase significantly compared to the previous quarter and the shortage of components should decrease. In the fourth quarter, the situation regarding the availability of components turned out to be worse than in the third; it will improve in the current quarter. As the Apple boss explained, the company now lacks chips that are manufactured using mature technical processes, there are no problems with the availability of advanced lithography.

In an interview with CNBC, Tim Cook also added that the company is experiencing significant inflationary pressures, but has not yet increased the prices of its products in the US as a result. According to him, all market participants are now feeling inflationary pressures. Not only materials and components have become more expensive, but also transport services. Cook expressed hope that at least some of these phenomena will be temporary. At the same time, the head of the company acknowledges the idea that Apple will be forced to raise the prices of its products in the United States. In the markets of both Americas, the company gets nearly 42% of total sales, so it can’t ignore dollar inflation indefinitely.


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Johnson Smith

Johnson Smith is interested in Home Theater & Audio, Smart Tech, Google News & Products, How To, Apple News & Products, Cell Phones, Automotive Technology.

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