The unexpectedly robust findings show that supply disruption fears were exaggerated.
Apple Inc. rose in late trade after quarterly revenue above Wall Street expectations, signaling a win over a supply-chain crisis exacerbated by the pandemic and chip shortages.
According to the corporation, sales increased by 11% to a new high of $123.9 billion in the fiscal first quarter.
On average, analysts expected $119.1 billion.
Profit exceeded expectations, and sales were expected to increase by a double-digit percentage in the March quarter, according to the firm.
The unexpectedly robust findings show that supply disruption fears were exaggerated.
Tim Cook, Apple’s CEO, warned late last year that supply shortages may cost the business more than $6 billion in sales during the crucial holiday season.
However, Apple was able to weather the storm and benefit from a slew of new products, including the iPhone 13, Apple Watch Series 7, and improved Macs.
In extended trading, the stock rose as high as 5.8% to $168.38. They had lost 10% this year before the report, owing to a larger slowdown. In 2021, the stock increased by 34%. After a recent collapse damaged technology stocks, investors have been looking to Apple for reassurance.
Concerns about a sales slowdown and expected interest rate hikes have made the industry less tempting in recent months, with Apple being one of the worst-affected companies. Apple is now worth $2.6 trillion, down from a peak of $3 trillion in early January.
Earnings for the Cupertino, California-based firm increased to $2.10 per share in the first quarter, beating analysts’ expectations of $1.90.
Apple executives stated on a conference call that supply-chain limitations will loosen even more in the March quarter, but that the company’s growth rate would slow for both the overall business and the services division.
Apple didn’t specify a sales objective, only that it would be a new high for the period. Revenue is expected to exceed $90 billion, according to analysts. Apple expects a gross margin of 42.5 percent to 43.5 percent.
Apple also said that there are already 1.8 billion Apple devices in use, up 300 million from two years ago.
Additionally, it now has 785 million paid Apple and third-party subscriptions on its platform, up from 745 million the prior quarter. The company’s primary product, the iPhone, brought in $71.6 billion in revenue, exceeding Wall Street projections of $67.7 billion.
That’s a 9.2 percent increase over the previous quarter. The sales period marked the start of the iPhone 13’s first full quarter of revenue.
Cook claimed the entire iPhone 13 line contributed to the significant growth on the company’s earnings call, but he didn’t say whether the Pro models performed better than the cheaper models.
The phone was released in September, a few weeks before the iPhone 12 was released in 2020.
Even though the iPhone 13 was deemed a minor update, consumers who wanted to upgrade to the 5G service flocked to the handset.
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