Apple in best 5-year quarterly earnings at $123.9bn for Q1

BY CHARLES ABUEDE

American technology giant, Apple Inc., recorded its highest quarterly revenues in five years when it posted $123.9 billion in the first quarter of 2022, something Tim Cook, chief executive officer, said was majorly driven by innovativeness.

Net profit for the quarter stood at $34.6 billion, but in comparison, fourth quarter 2021 revenues and net profits were $111.4 billion and $28.8 billion, respectively.

A banklesstimes’ data presentation recognised Apple’s 2022 first fiscal quarter results as the best the firm has recorded in half a decade as the tech giant’s gross margin printed at 43.8 percent, buoyed by an 11 percent quarter on quarter increase in its previous quarter’s revenues. That was a four percent increase from its Q4 2021 figure of 39.8 percent.

Apple achieved those results despite supply chain constraints, including chip shortages as the company grew its active devices to 1.8 million, another record which came with increased revenues in almost all of its product categories.

Analysing reasons behind Apple’s impressive returns for the quarter, the financial information by the company pointed to several factors with the main driver being the all-time revenue record that its iPhone unit set.

The unit earned Apple $71.63 billion, having grown nine percent in year on year terms. Apple pins this success to its iPhone 13 model, which it says contributed 71 percent of its U.S sales.

Furthermore, impressive gains were recorded in the sales of its Mac products where data show the company made $10.85 billion from that unit’s sales, growing 25 percent year on year and bolstered by robust demand for the MacBook pro. The Mac unit also registered a record number of upgrades in the last six quarters.

Also, the brand’s wearables, home and accessories, and services units also registered significant gains contributing $14.7 billion and $19.5 billion in sales.

However, Apple’s only blotch was a 14 percent year on year decline in iPad sales during the quarter which printed at $7.25 billion.

Per the impressive topline and bottom-line performances, Tim Cook, Apple’s chief executive, spoke of his pride in the achievement while applauding the company’s staff for the innovative line of products that made the feat attainable. He further noted that the performance was better than they had anticipated.

Also, Cook appreciated Apple’s customers for their response to its products. Besides the record-breaking revenues, the firm also registered the best ever customer satisfaction scores of 98 percent.

The CEO also reiterated the company’s commitment to helping build a better world. Apple is pushing towards attaining carbon neutrality across its ecosystem by 2030. It is also increasing its investments in education while championing racial equity and justice.