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SAN FRANCISCO: Apple reported record $124 billion quarterly revenue despite a global chip pinch and shifting impacts of the pandemic that have weighed down other big tech players.
The expectations-beating results offered signals that the coronavirus-era tech boom may not be quite over yet, even as diminishing growth shadows firms like lockdown lifestyle champ Netflix.
“We set all time records for both developed and emerging markets and saw revenue growth across all of our product categories except for iPad, which we said would be supply-constrained,” CEO Tim Cook told analysts.
Smartphone sales topped $71 billion, buoyed by strong demand for the iPhone 13 line, especially in China. Overall, the tech giant posted a net profit of $34.6 billion in its first quarter, compared with $28.7 billion in the same quarter the prior year, according to the earnings report.
The supply chain mess that has disrupted the making and delivery of products to consumers is not disappearing, but Apple said it expected less impact in the coming months. “There’s some encouraging signs there,” Cook added.
The semiconductor drought — caused by a mix of factors including a surge in demand after the Covid-19 pandemic and virus-linked disruptions in chipmaking nations — has affected industries across the globe from tech giants to carmakers.
Despite the volatility of the moment, Apple became the first US company to hit $3 trillion in market value, briefly reaching the landmark in early January in the latest demonstration of the tech industry’s pandemic power.
Apple reclaimed top smartphone seller honors in China after a six-year gapdue to its capacity to sell a lot of handsets, clocking a record market share in the final quarter of 2021 as US sanctions hit rival Huawei.
A surge in sales saw the iPhone maker account for 23 percent of the highly competitive market in October-December, industry analysis firm Counterpoint said in a report released Wednesday. That put the US giant in pole position for the first time since the final three months of 2015, topping China’s Vivo.
The App Store posted record quarterly revenue as Apple took in more than $19 billion from selling services and software to users of its coveted devices. Banner revenue at the App Store comes as Apple defends itself against accusations that its control over the online shop amounts to a monopoly. However gradual steps toward in-person living won’t be good for business and the company expect growth to “decelerate”.
“This is due to a more challenging (comparison) because a higher level of lockdowns around the world last year led to increased usage of digital content and services,” Apple CFO Luca Maestri told analysts.
