Apple’s earnings are out and they surpassed the estimates of analysts in all major categories. The company’s CEO also revealed on Thursday that the company’s supply chain challenges were also improving. This announcement sent Apple’s shares soaring by about 5 percent in extended trading.
Apple recorded earnings per share of $2.10, up 25 percent YoY and surpassing the estimate of $1.89. Revenue was up 11 percent YoY and stood at $123.9 billion. Analysts estimates for revenue was $118.66.
Now let’s look at the company’s categories of revenue. Revenue for Apple’s iPhone was $71.63 billion, up 9 percent YoY. Analysts has estimated $68.34 percent for the category. Revenue for Services was up 24 percent at $19.52 billion, surpassing the $18.61 billion that analysts estimated. Other Products revenue was $14.70 billion surpassing a Refinitiv consensus by analysts of $14.59 billion. Revenue for Mac stood at $10.85 billion surpassing $9.52 billion estimated by analysts. Mac Revenue was also up 25 percent YoY. iPad revenue was the only category that fell short of analysts’ expectations of $8.18 billion. Revenue for this category was $7.25 billion, up 14 percent YoY. Gross margin was 43.8 percent surpassing estimates of 41.7 percent.
The iPad category was the only product category that fell short of estimates. Overall, the company did impressively well. The company, like other recent times, failed to provide official guidance for the new quarter. CEO Tim Cook, however, did say in an interview that “What we expect for the March quarter is solid year-over-year revenue growth. And we expect supply constraints in the March quarter to be less than they were in the December quarter”.
Despite warnings that supply challenges could hurt the company’s sales, the company’s categories experienced impressive growth in its most important quarter that included holiday sales.
CEO Tim Cook expects the March quarter to see some improvements in supply challenges. He said that the company’s supply problems were improving, that the December quarter was worse than the September quarter and the company managed to scale through.
“Our biggest issue is chip supply, it’s chip supply on legacy nodes. And we’re doing okay on the leading edge stuff”, he said.
“I think everybody’s seeing inflationary pressure. There’s no two ways about that”, he added saying that Apple, like other companies, is seeing inflationary pressure.