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Highlights
- China is one of the largest markets for Apple.
- Its iPhone models are the top-selling phones in that country.
- The California-based technology company said the chip shortage had mostly affected its older iPad models, but it managed to sail through the rocky period.
Apple Inc (AAPL) has posted record sales in the fiscal first quarter of 2022, handily beating sales and profit estimates as it recovers from the impact of a global computer chip shortage.
The iPhone maker, the world's largest company by market capitalization, saw solid sales during the holiday season. Its iPhones, Mac, wearables, and other gadgets were in high demand.
The California-based technology company said the chip shortage had mostly affected its older iPad models, but it managed to sail through the rocky period. China is one of the largest markets for Apple. Its iPhone models are the top selling phones in that country.
According to analysts, cited by Reuters, Apple became the top-selling vendor for the first time in six years. They said the modest pricing of Apple products and Huawei’s exit from the market helped it post strong quarterly results. But they don’t see a similar performance in 2022.
However, Apple is expected to launch its new iPhone SE later this year. And Chinese consumers might give another boost to its sales if the new product registers some traction. Apple's growing subscriptions for music, TV and fitness services helped offset its low device supplies.
Apple said it now has 785 million paying subscribers, up by 40 million from last quarter.
The company’s Chief Financial Officer Luca Maestri told Reuters that the improvement in the chip crunch may have helped narrow the revenue losses to less than US$6 billion in the quarter.
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Source: Pixabay
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Apple’s Sales
Apple’s revenue from phone sales increased by 9% to $71.6 billion in the quarter YoY, comfortably beating Wall Street targets, according to Refinitiv data. The company had launched its new iPhone 13 days before the quarter started.
Its overall first-quarter revenue was US$123.9 billion, up 11% YoY, higher than the analysts' expectations of US$118.7 billion. Its profit rose to US$34.6 billion, or US$2.10 per share, compared with the Wall Street expectations of US$31 billion and US$1.89 per share.
However, the iPad section is the only segment that missed the sales expectations, falling 14% to US$7.25 billion against analyst estimates of US$8.2 billion. Apple's services sales, the second-biggest segment after iPhones, rose 24% to US$19.5 billion, while Mac revenue rose 25% YoY.
The Apple (AAPL) stock closed at US$170.33, up 6.98%, a day after the quarterly results.
