Apple has announced its quarterly results for the beginning of 2022. Despite the computer chip shortage, the American group announced record iPhone sales. The services offered by the brand are also popular. Unfortunately, Apple expects overall sales to decline in the next quarter. The firm expects a deficit of more than $4 billion due to various factors, including the return of Covid-19 in China.
Apple has just released its financial results for the first quarter of 2022. The Cupertino giant managed to achieve results that exceeded the forecasts of analysts. Apple really announced $97.3 billion revenueincreased by 8.6% year-on-year.
This is the second best quarter in Apple history at this point. Wall Street counted on a limited turnover of $93.89 billion. This performance gave a boost to the company’s stock marketIt rose 2.3%. “We are happy to see strong customer response to our new products”He greets Tim Cook with particular reference to the iPhone SE 5G, Mac Studio and iPad Air 5 whose keynote took place in March.
Record iPhone sales in March 2022
“We are very pleased with our record March quarter business results as we set the services revenue record and iPhone March quarter revenue record”Luca Maestri, Apple’s CFO, said in a press release: Sales of services like iCloud, Apple Music and Apple TV+ Up 17.28% QoQ. Apple benefits greatly from its large worldwide user base. Services brought the group $19.8 billion during the quarter for 825 million subscribers, or 165 million subscribers a year ago. Apple’s transition from hardware to services is a success.
As always, the Californian band It earns a significant portion of its profits from iPhone sales.. Building on the tremendous success of the iPhone 13, Apple earned $50.57 billion, or 5.5% better than in the first quarter of 2021, thanks to its high-end smartphones. But historically, this is Apple’s lowest quarter. Terminal sales often shrink as the holiday season ends. Especially thanks to the launch of the iPhone SE, this situation is gradually decreasing.
Tim Cook in an interview with CNBC relates excellent iPhone sales to old Android smartphone users. The CEO assures that the majority of iPhones sold in the first quarter were bought by new customers. “Obviously a strong cycle”says the manager.
Same story on the Mac side. Thanks to a fully modernized computer catalog, Apple made $10.4 billion in the first quarter, up 14.6%. The Apple brand also benefits from: high demand for computers since the health crisis. Remote work and homeschooling have been accompanied by a resurgence of interest in the laptop industry.
Apple affected by the return of coronavirus in China
Following this new record quarter, Apple expects halving for the April-June 2022 period. The group warns investors. A deficit of between $4 and $8 billion. “This is significantly more than in the previous quarter”, emphasizes Luca Maestri. Last year, this deficit did not exceed $6 billion in the third quarter.
The Californian manufacturer points to limitations initially agreed upon by the Chinese government. China has decided to limit several regions to prevent the outbreak of coronavirus cases. These measures contribute to: Reducing demand for products in the Chinese marketIt is very important for phone manufacturers.
Restrictions in China are also helping to disrupt Apple’s production chain. Some Apple suppliers, such as Pegatron and Foxconn, had to close their factories for a few days. These difficulties are compounded by the shortage of computer chips struggling to run out.
Finally, Apple also believes that the suspension of its operations in Russia will contribute to reducing its profits for the next quarter. The group after the occupation of Ukraine Stopped the sale of iPhone, iPad, AirPods and all their products in the Russian market. Leaders also underline the non-negligible impact of inflation and falling purchasing power on consumer behavior in the coming months.
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