Apple Q2 results: Revenue jumped by 9%, iPhone makes the most

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Apple Q2 FY22 earning

Apple has announced the financial results for the March quarter of fiscal 2022. The company has continued to post stellar figures with the March quarter revenue record of $97.3 billion.

Revenue jumps: The American tech giant has posted a record revenue of $97.3 billion, which is 9% up from $89.6 billion in the same quarter of the previous year. The jump in revenue is mainly due to the company’s stellar performance through sales in the American region and over $50 billion worth of revenue generation from sales of iPhones. Apple managed to post robust quarterly results despite chip shortages, a problem which is likely to affect the company in the near future.

Increase in operating income: Apple registered a bit over 9% Y-o-Y increase in its operating income. The figure for the three months' March quarter stands at $29.98 billion compared to $27.5 billion in the same quarter of the previous year. The net operating income, after deducting expenses and taxes, is a little over $25 billion. This translates into $1.52 per share, an increase of 6% from the same quarter last year. The numbers well beat the estimate of $1.42 per share by analysts.

Sales in different segments: Around 80% of the revenue comes from product sales. Apple generated around $77.5 billion through sales of iPhone, iPad, Mac, Wearables, and other home accessories. The remaining $19.8 billion has come through the sales of services like iCloud, iTunes, Apple TV, etc. As expected, the iPhone still accounts for most of the company’s revenue, which for this quarter stands at $50.6 billion. This is followed by the sales of Mac which generated $10.4 billion. Except for the iPad, revenue from the sales of all other products and services has increased. 

Sales in different regions: Apple generated the major part of its revenue from America, which is the company’s largest market. From America alone, the tech giant collected over $40.8 billion of revenue, which is more than 41% of the total revenue. The revenue from the Americas has increased by almost 19%. From the European and Chinese markets, the company has $23.3 billion and $18.3 billion respectively.

Dividend announced: Apple announced a cash dividend of $0.23 per share of its common stock, which is an increase of 5% over the previous dividend. The shareholders will receive the dividend on May 9, 2022. The company has been steadily increasing its dividend payout for the past decade. If compared with 10 years ago, the dividend has increased by more than 100%

What the Company Officials Expect

Tim Cook, Apple’s CEO said, “We are delighted to see the strong customer response to our new products, as well as the progress we’re making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world — both in what we create and what we leave behind”

Company’s CFO Luca Maestri said, “We are very pleased with our record business results for the March quarter, as we set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories”

Also, in addition, Apple said that its board of directors authorized $90 billion in share buybacks, maintaining its pace as the public company that spends the most buying its own shares.

Hurdles for the next quarter

Although Apple managed to produce good results this time, continuing the same is likely to be difficult for the next quarter. There has been a prolonged chip shortage in the tech industry, and with the further disruption in the supply chain because of the Russia-Ukraine crisis, it is going to worsen in the coming months. As per the company’s CEO Tim Cook, it will affect Apple’s most of the products. 

On the brighter side, the shift from Intel’s to the company’s native M1 chip has been proven well and has resulted in around 15% revenue jump from Mac sales. 

Despite healthy results, Apple shares closed lower on Friday at $157.65.