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Apple Revenue Pops 11% To $123.9 Billion Despite Supply Chain Concerns (cnbc.com) 65

Posted by BeauHD from the impressive-numbers dept.
According to CNBC, Apple "beat analyst estimates for sales in every product category except iPads and overall revenue was up 11% annually." This is despite global supply chain challenges caused by the covid-19 pandemic. Here is how Apple did in the quarter ending Dec. 25 versus Refinitiv consensus estimates (via CNBC): EPS: $2.10 vs. $1.89 estimated, up 25% year-over-year
Revenue: $123.9 billion vs. $118.66 billion estimated, up 11% year-over-year
iPhone revenue: $71.63 billion vs. $68.34 billion estimated, up 9% year-over-year
Services revenue: $19.52 billion vs. $18.61 billion estimated, up 24% year-over-year
Other Products revenue: $14.70 billion vs. $14.59 billion estimated, up 13% year-over-year
Mac revenue: $10.85 billion vs. $9.52 billion estimated, up 25% year-over-year
iPad revenue: $7.25 billion vs. $8.18 billion estimated, down 14% year-over-year
Gross margin: 43.8% vs. 41.7% estimated

[Apple CEO Tim Cook] said that the company's supply issues were improving. He said that in terms of supply challenges, the December quarter was worse than Apple's September quarter, but that he is projecting the March quarter to improve. "Our biggest issue is chip supply, it's chip supply on legacy nodes," Cook said. "And we're doing okay on the leading edge stuff." [...] "What we expect for the March quarter is solid year-over-year revenue growth," Cook said. "And we expect supply constraints in the March quarter to be less than they were in the December quarter."
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Apple Revenue Pops 11% To $123.9 Billion Despite Supply Chain Concerns More

Apple Revenue Pops 11% To $123.9 Billion Despite Supply Chain Concerns

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  • Apple has been killing it with new products (Score:4, Insightful)

    by SuperKendall ( 25149 ) on Thursday January 27, 2022 @09:38PM (#62214031)

    I'm not too surprised at this, Apple has a fantastic range of products now.

    I can't think of a single product line where they didn't release some really nice updates in the last year or two - the new phones have been great, the new iPads a really nice mix of sizes and abilities, and of course especially the new Macs - you can easily see there how the actual result was a *billion* dollars higher for Mac revenue than the estimates for that segment.

    Obviously I am an Apple fan and biased here, but clearly the across-the-board increases reflect a wider group of people feel the same way.

    The only surprise to me is that they were able to actually assemble and ship enough devices to actually make higher numbers when there have been so many supply disruptions over the last year...

    I think this result shows just how wizard Apple is at managing supply chains, which was always Tim Cook's core strength. That alone could be the key skill for success in any company over the coming years, maybe at this point Apple really is better off with Cook at the helm than Jobs.

    • Who got killed was Huawei:

      Huawei had just 7% market share in China in the fourth quarter and sales declined 73% year-on-year, Counterpoint Research said.

      Chinese giant Huawei - once the number one smartphone player in China and the world - has been crippled by U.S. sanctions which cut the company off from key components and software for its devices.

      The fact that the US gov. was able to murder Huawei in China is remarkable. I can't imagine China will just let that slide. Be really interesting to see ho

    • I was surprised that the iPad revenue was lower than expected. The entry level one is a nice tablet for many and offered at an ok price. The top ones with M1 processor are killer machines for creative pros. Maybe it is a sign of ipad replacement cycles being pretty long.
      I think that the Mac revenue could have been higher still given smoother supply, the new macbook pros still have a long wait. I must say that I find mine (14â, M1 Max) fantastic.

      • I was surprised that the iPad revenue was lower than expected.

        Wow, I didn't notice that was down from expectations, I guess I stopped reading after all the other Ups... :-)

        That does surprise me also because the new iPad mini is the first iPad in years that had me seriously thinking of upgrading from an older iPad Pro... I didn't end up doing it but it looked like a really great mix of features and price.

        I myself don't have an M1 laptop yet, but will within the next year or so I'm pretty sure. Heck that mi

    • > I can't think of a single product line where they didn't release some really nice updates

      their wireless headset didnt get any new useful features since it got out years ago

      • > I can't think of a single product line where they didn't release some really nice updates

        their wireless headset didnt get any new useful features since it got out years ago

        I think you may be confused. All three of their wireless headphone lines have seen hardware of feature updates within the last year (or so). The base AirPods line saw a hardware update just 3 months ago, the AirPods Max (which is what I think you were referring to?) was launched just 13 months ago, and the AirPod Pro got Spatial Audio in 2020 and Conversation Boost in 2021, so it’s not lacking for updates either, even if it may be due for a hardware revision.

    • I think this result shows just how wizard Apple is at managing supply chains, which was always Tim Cook's core strength. That alone could be the key skill for success in any company over the coming years, maybe at this point Apple really is better off with Cook at the helm than Jobs.

      This is just of a variant of the old "rich becomes richer", ie big becomes bigger. Apple's the biggest consumer tech company in the planet, so I'd expect it to weather the supply chain crisis better than the smaller companies.

    • Re: (Score:2, Troll)

      by AmiMoJo ( 196126 )

      Apple sells a small cloth for $20. Apple can put out almost anything, price it at 20x what competitors charge and sell out in minutes. Yes, there is a shortage of Apple cleaning cloths.

    • Re: Apple has been killing it with new products (Score:4, Informative)

      by e3m4n ( 947977 ) on Friday January 28, 2022 @09:06AM (#62214887)
      They push updates much longer than android it seems. An android phone seems to go EOL after year 2 and they want you to buy a new phone. Apple still pushed an update to the 6s for ios15. Thats a 6+ yo phone. That makes playing family musical chairs with the apple devices more realistic than android ones when you are most likely to all be on the same software release.
      • In the face of it that's certainly true. When you take into account that the iPhone 6s way finally discontinued in September 2018, with devices being sold after that date from channel stocks, it's not all that impressive, 3.5 years. I got my OnePlus 3T in December 2016, it was discontinued around April 2017 and the last update I got was in December 2019. Yes, Apple is doing better, but not by that much. Frankly, the only company doing really well comparatively speaking, is Fairphone with 5 years of support
        • Is that 5yr of support just bug fixes? Or is it 5yr of having the exact same features and functions as the person who bought a newer model yesterday? I dont buy new phones for my kids. My wife and I get new phones every 3yr and hand off our old phones to our 2 kids. Its nice to know that when a new parental control rolls out or they throw in an entirely nee way of using facetime, I can take advantage of that with the kids phones too. I have an android tablet for my son; lenovo 10in. Its decent but I never s
          • It remains to be seen, the device has just hit the market a few months ago. From memory, 3 major updates, 2 more years with security updates.
  • for $26 bucks shipped. I already had a set and wanted a spare at that price. Battery life is better and sound quality is better than Airpods. The Airpods are $90-$120 depending on when/where you buy them.

    I have no doubt Apple is more profitable than ever. They've got markups north of 300%. I get if you're hard up for a Unix PC without the hassle, but I just don't get the rest of Apple's devices.
    • Itâ(TM)s in the summary. They have an overall gross margin of 43.8%, not 300% but sure healthier than many operating in the segment.

      • Re: (Score:2)

        by Ecuador ( 740021 )

        I think the gp saying "They've got markups north of 300%", despite sounding very exaggerated, is most likely correct given an "overall gross margin of 43.8%". You wouldn't expect the same gross margin across all their product lines, so for it to be that high overall, it could be quite excessive for some products and airpods are probably among the bad cases among "real" products (i.e. disregarding things like the $20 piece of cloth).

    • Battery life is better and sound quality is better than Airpods.

      That's nice I guess, but I value the ease of switching between transparency and noice cancellation easily.

      Although I'm not really an audiophile I am dubious the sound quality of those is really better.

      • One thing i will say about the amazon marketplace wireless ear buds is they seems to cut out in crowds. Ive never owned air pods, but ive purchased 3 different $50 pricepoint wireless ear buds and when Planet Fitness gets to about 35% capacity one or both of the ear buds will cut out for a second or two at a time randomly during my workout. Once it starts it keeps doing it for the duration. It never does it when only a few people are working out.

  • Not surprising. (Score:5, Insightful)

    by Qbertino ( 265505 ) <moiraNO@SPAMmodparlor.com> on Friday January 28, 2022 @06:10AM (#62214597)

    Apple now basically controls 100% of their supply chain. They are so obscenely rich on cash, they can do projects and tech-spikes others simply can not do. Example:They were seasons ahead with an entirely resolution independent UI and rendering stack and could sport ultra-high-res displays without breaking a sweat.

    And now they've got their own CPUs.

    No other vendor has ever had this sort of control, from raw components right up to the end customer in Apples own luxury retail stores.

    They've got the best power management and now with their own silicon upping high-load battery time by roughly 2x is a walk in the park for them. They have their own OS, so they can make it fly on their RISC cpu and justify an additional price-hike on top of the already hefty premium of post-Jobs times.

    Then can decide to do convergence tomorrow and everybody else can only just sit and watch, gaping with a dropped jaw.

    This all is so far out ahead of everybody else that even I, who just a few years back decided to decommission Apple in my personal computing after 13 years of satisfaction, am eyeing they stuff again. And all this despite their increase in pricing once again and the additional epic increase in margin they're now realising with their own cpus.

    That Apple can just about shrug off such a thing as the CoViD Crisis is of no real surprise to me.
    Say what you will about Apple, but they do run a tight ship for a global corp, there is no two ways about that.

    • Well the CPI increased by 8% year over year from December. Energy prices up 42%. Meat, dairy and eggs up over 15%. The fact Apple increases its profits to keep up with inflation without having to raise prices by 8% is impressive.

  • Apple literally make nothing of any interest to me, and they don't even make many different things - the phone, a handful of computers, and an obscure TV thing. What the hell is generating all this money?

    • Almost half of their revenue from products is the iPhone. You are not their market, but that does not mean rest of the world as Apple by phone shipments is second to Samsung.

      • Re: (Score:2)

        by nagora ( 177841 )

        Almost half of their revenue from products is the iPhone. You are not their market, but that does not mean rest of the world as Apple by phone shipments is second to Samsung.

        Sure, but there's nothing special about the iphone. To generate $60bn in sales of something that's not particularly noteworthy is amazing to me. And, as you say, they don't even have dominance of the market - Samsung alone sells more and they're only one Android seller.

        • To generate $60bn in sales of something that's not particularly noteworthy is amazing to me.

          And I know many people who would never buy a Samsung due to their bloatware. They do not find Samsung "particularly noteworthy."

          And, as you say, they don't even have dominance of the market - Samsung alone sells more and they're only one Android seller.

          Samsung makes more models especially in the budget areas. It is common sense that if they sell more phones that are cheaper, Samsung will not make as much money as Apple.

  • Comment removed based on user account deletion
  • There are billions of phones sitting in drawers all over the world and they'll double and double and double. Closets and basements are full of old PCs and laptops too. Printers, scanners, shitty webcams you name it.

  • It's a bit odd how many companies are suddenly reporting record revenues and profits, yet they complain they can't afford to pay more for workers and can't attract workers at the wages they're offering.

    Funny that.

    • I don't hear any big companies complaining that they can't afford to pay people more. It's the small shops that can't afford it.

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