Business

Apple revenue hits another record as it navigates supply chain collapse

Apple posted record revenue of $123.9 billion for the fourth quarter of 2021, up 11% from a year ago as its services business expanded and chip shortages mostly hit sales. sell iPads.

The computer and iPhone company’s net profit for the last three months of the year jumped 20% to $34.6 billion, much higher than the $31.1 billion forecast. Revenue beat analyst expectations of $119 billion and $111.4 billion reported a year earlier.

Shares of Apple rose 5% after the announcement of the results late Thursday.

Chief financial officer Luca Maestri told the Financial Times that supply chain issues are affecting a broad shift in the economy, costing Apple “more than $6 billion” in revenue, similar to the previous quarter. Investors had predicted the supply trend to reach close to $10 billion based on the company’s earlier remarks.

Maestri said supply chain concerns have been addressed, adding: “We expect to set a record March quarter revenue and we expect solid revenue growth across on an annual basis.”

The Cupertino-based tech giant, which hit a market value of $3 billion earlier this month, said the iPhone accounted for 58 percent of total revenue, up 9% from a year ago to $71.6 billion. . Analysts were expecting $67.4 billion in revenue.

“The five best-selling smartphones in the US and Australia are all iPhones,” said Maestri. “The top four businesses in urban China are all iPhones.”

Revenue in China grew 21% to $25.8 billion, while sales in the Americas grew 11% to $51.5 billion and sales in Europe rose 9% to $29.7 billion. Japan was the only weakness, with revenue falling 14% to $7.1 billion; sales in the rest of Asia increased 19% to $9.8 billion.

According to the Counterpoint research team, Apple smartphone shipments in China rose 32% from a year earlier to 50 million units, taking the top spot from Huawei after US sanctions reduced shipments of components to the group.

When asked if Apple needs to overhaul its supply chain, chief executive Tim Cook said: “I think our supply chain is actually doing really well considering the shortage of money. deficit.

“It’s a fast-moving supply chain, short cycle times, with very little gap between a chip being built and packaged and going out of the factory. So I don’t see it doing [for] a fundamental change in the supply chain. ”

Revenue from the services unit, which houses the App Store and digital media purchases, rose 24% to $19.5 billion, beating forecasts for a 19% increase. The segment’s operating margin increased to 72.4%, nearly double the product’s 38.4% margin.

“We have great momentum in paid subscriptions – we now have over 785 million paid subscriptions on our platform,” said Maestri. “This number has grown by 165 million in the last 12 months alone.”

The wearable unit that sells Apple Watch and AirPods recorded a 13% increase in revenue to $14.7 billion. Mac sales grew 25% to $10.9 billion.

iPad sales were the only category that fell as Apple prioritized components for the iPhone. The tablet’s sales fell 14% to $7.2 billion.

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