On Thursday, Apple disclosed its financial results for the second quarter. As a result of better-than-anticipated sales of iPhones, this result exceeded the sales and revenue projections made by Wall Street.
Tim Cook, CEO of Apple, summed up the quarter by saying it was “better than we expected.” Despite this, Apple’s total revenue dropped for the second straight quarter. The following is a list of the expectations held by the Refinitiv consensus on the company’s performance:
EPS of $1.52 compared to the expected figure of $1.43, sales of $94.84 billion compared to the expected figure of $92.96 billion, and gross margin of 44.3% compared to the expected figure of 44.1%. When compared to the prior year’s quarterly net income of $25.01 billion, Apple’s reported quarterly net income came in at $24.16 billion.
Despite Apple’s Overall Product Sales Decline, the iPhone Continues to Shine
The increase in sales of iPhones was the most noteworthy aspect of Apple’s report when compared to the same quarter from the previous year. IDC estimates that the overall smartphone sector had a decline of about 15 percent during the same time period, which is a really surprising finding.
The fact that sales of iPhones climbed by 2% during the period under review suggests that the product is now recovering from the component shortages and supply chain problems that have plagued it over the course of the past several years.
Due to a lack of available parts, Apple’s Mac and iPad businesses did not perform as well as expected, and both categories saw a decline that was worse than what was projected.
Most Apple Product Lines Generate More Money Than Expected
The following is a summary of how well Apple’s different product lines performed in comparison to the predictions of the StreetAccount consensus:
Revenue from the iPhone was $51.33 billion, which was higher than the expected $48.84 billion; revenue from the Mac was $7.17 billion, which was lower than the expected $7.80 billion; revenue from the iPad was $6.67 billion, which was lower than the expected $6.69 billion; revenue from Other Products was $8.76 billion, which was higher than the expected $8.43 billion; and revenue from Services was $20.91 billion, which was lower than the expected $20.97 billion.
Apple did not issue any official guidance, which has been the company’s strategy since 2020 and the beginning of the Covid-19 epidemic. However, management will generally provide certain data points when speaking with analysts on a call.
Apple’s Wearables Surpass Predictions and Its Services Division Expands
Services is the most profitable division of the company, generating $20.9 billion in revenue last year, an increase of 5.45% year over year. This includes monthly subscriptions, App Store revenue, warranty revenue, and search licensing revenue from companies like Google.
A 1% quarterly decline in Apple’s wearables segment, which includes the Apple Watch and wireless headphones like the AirPods, was worse than expected.
Apple’s sales in greater China (including Taiwan and Hong Kong in addition to the mainland) totaled $17.81 billion, down from $18.34 billion in 2017.
As was to be expected, Apple’s board of directors authorized $90 billion worth of share repurchases and dividend payments.
Apple spent $23 billion on buybacks and dividends during the March quarter of this year. In addition to that, the company raised its dividend by 4%, bringing it up to 24 cents per share.
Cook has stated unequivocally that Apple has no plans to reduce staff. Unlike other major technology businesses that have started them throughout the course of the previous year.
News Source.
Contents