Apple (AAPL) Q4 2021 Revenue

Apple Thursday’s fourth-quarter earnings were lower than Wall Street’s expectations. This is because Apple CEO Tim Cook has exceeded expectations on iPhone, iPad, and Mac supply constraints.

Apple fell more than 4% in after-hours trading in the market.

Cook told CNBC’s Josh Lipton, “Despite the unexpected supply constraints (estimated at about $ 6 billion), we’ve done a very strong job.” “Supply constraints were caused by the much talked-about industry-wide chip shortage and the COVID-related manufacturing turmoil in Southeast Asia.”

However, Apple’s overall revenue is still up 29%, and each product category is growing every year.

Here’s a consensus estimate between Apple’s method and Refinitiv:

  • EPS: $ 1.24 vs. $ 1.24 estimate
  • Revenue: Estimated $ 84.85 billion vs. $ 83.36 billion, up 29% year-on-year
  • iPhone Revenue: Estimated $ 41.51 billion vs. $ 38.87 billion, up 47% year-on-year
  • Service revenue: Estimated $ 17.64 billion vs. $ 18.28 billion, up 25.6% year-on-year
  • Revenue of other products: Estimated $ 9.33 billion, up 11.5% year-on-year to $ 8.79 billion
  • Mac Revenue: Estimated $ 9.23 billion, up 1.6% year-on-year to $ 9.18 billion
  • iPad Revenue: Estimated $ 7.23 billion, up 21.4% year-on-year to $ 8.25 billion
  • gross profit: 42.2% vs 42.0% estimate

iPhone sales were up 47% year-over-year, but still below Wall Street estimates.

Apple hasn’t provided official guidance since the launch of the pandemic, but Cook said it had “strong year-over-year earnings growth” in the December quarter, despite Apple saying supply constraints would worsen this quarter. He said he was expecting.

“That’s why we’ve finished about a month of the quarter. The Covid-related manufacturing turmoil has improved significantly. The chip shortage will last for a long time,” Cook said.

According to Cook, the supply problem isn’t with the technically advanced processors at the heart of Apple’s devices, but with the chips in “legacy nodes” or older chips.

Year-over-year sales growth is expected, suggesting that Apple is significantly increasing demand for the new iPhone 13 model. Apple’s fourth quarter included sales of the iPhone 13 that ended September 25 for only a few days.

Apple is currently in the midst of significant growth due to the explosive growth in iPhone, iPad and Mac sales during the pandemic. In 2021, Apple’s annual revenue increased 33% from 2020 to $ 366 billion.

The strongest growth in the Apple product category other than the iPhone was in the App Store sales, music and video subscription services, advertising, extended warranty, licensing and other services businesses. Apple’s service grew 26% each year, and Cook said it was higher than the company expected.

According to Cook, Apple has 745 million paid subscriptions, including first-party services like Apple Music, as well as subscriptions from Apple’s App Store.

“This is a 160 million year-on-year increase, quintupling over five years, so it was a significant growth cycle,” Cook said.

Apple’s Mac didn’t grow strongly, growing by only 1.6% each year, but the quarter didn’t include sales of the new MacBook Pro model announced in October. Apple’s iPad grew 21% year-over-year, despite limited supply. Apple’s other product categories, including Apple Watch and AirPods models, grew 11% without new products launched in October.

According to Refinitiv data, this quarter is the first time Apple hasn’t exceeded its earnings estimate since April 2016, and Apple’s earnings have fallen below its estimate since May 2017.

Apple (AAPL) Q4 2021 Revenue

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