Apple made more money than ever, even with the tight supply chain

Tech

Apple has been making a regular trend to announce record-breaking quarterly results, especially in the company’s fiscal first quarter, including the Christmas shopping season. And the first quarter of 2022 managed to top them all: Apple just reported the largest quarterly revenue in its history. Driven by sales of the iPhone 13 series and continued growth in its services business, Apple posted revenue of $123.9 billion with earnings per share of $2.10, beating Wall Street’s expectations of $118, respectively. 66 billion and $1.89 were surpassed.

The iPhone had a supercharged sales quarter, no surprise considering it was a holiday season and the first full quarter of availability for the iPhone 13, 13 mini, 13 Pro and 13 Pro Max. The iPhone unit took in $71.63 billion, up 9 percent from the same quarter a year ago.

All of Apple’s other divisions were also up year over year, with the exception of the iPad, which fell 14 percent and was impacted by supply constraints. The Mac rose 25 percent, services 24 percent and wearables 13 percent.

2022 is expected to be very busy for Apple in terms of new product releases. The company is rumored to be preparing a new 5G-enabled iPhone SE next month. According to Bloomberg’s Mark Gurman, an updated iPad Air and possibly a revamped product in the Mac lineup — such as a Mac mini or iMac with the M1 Pro chip that debuted in the 2021 MacBook Pro — could also be released in the first half of the year. just yesterday, Bloomberg revealed that Apple could soon launch a Square-like service that would allow iPhone owners to accept contactless payments without the need for additional hardware.

Looking further into 2022, there are rumors that the company is also working on a new Mac Pro powered by its own silicon. And following on from the third-generation AirPods released last year, the next generation of AirPod Pro earbuds are also expected in the coming months, along with a redesigned iPad Pro and the usual iPhone refresh when fall kicks in.

An upgraded iPhone SE with 5G is expected to be Apple’s first product launch in 2022.
Photo by Vjeran Pavic / The Verge

But uncertainty surrounds the company’s highly anticipated mixed reality headset, Apple’s first major product in a new category since the Apple Watch in 2015. The latest reports suggest the VR/AR device may not launch until sometime in 2023.

Even as it moves forward with product plans, Apple continues to struggle with ongoing supply chain tightness. In the previous quarter, Apple estimated it lost $6 billion in revenue due to supply chain problems and the shortage of semiconductors. Delivery times for the 16-inch and 14-inch MacBook Pros have been particularly hard hit and remain long, with deliveries estimated in March and April for many configurations. It’s nearly impossible to find the more expensive SKUs in stock in Apple’s retail stores — and it’s been that way since the laptops went on sale in October.

Coinciding with today’s earnings, Apple CEO Tim Cook told: The Wall Street Journal that he expects the situation to improve soon. “We saw supply constraints on most of our products,” he said. “We predict we will be less” [constrained] in March than in the December quarter.”

Beyond the hardware, the company faces bigger and more frequent challenges to its strong hold on the iOS App Store; Apple has reluctantly agreed to allow third-party payment options in South Korea and for dating apps in the Netherlands, but has backed off against similar pressure in Russia. In the United States, CEO Tim Cook is said to have personally lobbied against antitrust legislation under consideration in Congress that could force Apple to allow software sideloading and compromise device security.

Speaking of software, before Apple released its earnings on Thursday, Apple introduced new betas of iOS, iPadOS, and macOS. iOS 15.4 will allow people to unlock their iPhone with Face ID while wearing a mask, while the delayed Universal Control feature is coming to iPadOS 15.4 and macOS Monterey 12.3.

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