Apple posts quarterly record of $123.9 billion in sales

Apple has posted its financial earnings results for the first fiscal quarter of 2022, reporting an all-time revenue record of $123.9 billion, up 11 percent year over year.

The company generated $71.6 billion in revenue from the iPhone, beating Wall Street estimates of $67.7 billion. That’s up 9.2% from the year-ago quarter. The sales period represented the first full quarter of iPhone 13 revenue.

On the company’s earnings call, Cook said the entire iPhone 13 line contributed to the strong growth and declined to specify if the Pro models were stronger performers than the other versions.

“This quarter’s record results were made possible by our most innovative line-up of products and services ever,” said Tim Cook, Apple’s CEO.

“We are gratified to see the response from customers around the world at a time when staying connected has never been more important. We are doing all we can to help build a better world — making progress toward our goal of becoming carbon neutral across our supply chain and products by 2030, and pushing forward with our work in education and racial equity and justice.”

Apple generated $19.5 billion in services revenue in the first quarter, topping Wall Street expectations of $18.6 billion. The category grew 24% from a year earlier on strong App Store, Apple Music and iCloud subscription sales.

Apple said earlier this month that developers generated about $60 billion from the App Store during 2021, but it didn’t share specific App Store revenue for the company.

The wearables, home and accessories division — a unit that includes the Apple Watch, Apple TV, AirPods, Beats headphones, the HomePod and other items — produced $14.7 billion during the quarter. That was up 13% from a year earlier and above the average estimate of $14.2 billion.

The category got a boost from new AirPods earbuds launching near the end of 2021 after not getting a similar upgrade in 2020. The Apple Watch Series 7, however, faced a release delay and significant shortages.

The company also reported about $10.9 billion in Mac sales, beating the estimate of $9.5 billion. That climbed 25% from the year-ago period. Apple launched a new MacBook Pro during the quarter that was well received by consumers and reviewers. Maestri said the majority of new Macs sold now have Apple-designed chips, rather than parts from Intel.

“This quarter’s record results were made possible by our most innovative lineup of products and services ever,” said Tim Cook, Apple’s CEO.
“We are gratified to see the response from customers around the world at a time when staying connected has never been more important. We are doing all we can to help build a better world — making progress toward our goal of becoming carbon neutral across our supply chain and products by 2030, and pushing forward with our work in education and racial equity and justice.”

On a conference call, Apple executives said supply-chain constraints would ease further in the March quarter, through its rate of growth would decelerate for both the overall business and the services segment. Apple didn’t give a specific sales target, beyond saying it would be a record for the period. Analysts are predicting that revenue will top $90 billion. Gross margin will be 42.5% to 43.5%, Apple said.

The company also said there are now 1.8 billion Apple devices currently in use, up 300 million from two years ago. And it has 785 million paid Apple and third-party subscriptions on its platform, up from 745 million reported in the previous quarter.

Apple’s board of directors has declared a cash dividend of $0.22 per share of the Company’s common stock. The dividend is payable on February 10, 2022 to shareholders of record as of the close of business on February 7, 2022.