The iPhone is still a bestseller: Apple is happy about the big profit

iPhone is still a bestseller
Apple is happy about the big profit

4/29/2022 1:01 a.m.

Despite the gloomy economic outlook, Apple posted growth of nearly nine percent. In addition to the smartphone division, subscription offers like Apple TV+ also drive sales. CFO Maestri is not particularly optimistic about the current quarter.

Apple isn’t letting the global economic slowdown, inflation pressures and chip shortages stop it. In the three months ending March 26, the iPhone maker grew nearly 9 percent to $97.3 billion, significantly beating analysts’ expectations. On the one hand, Apple benefited from persistently high demand for its iPhone and other best-selling devices, and on the other hand, the US group sold services, including its subscription offerings, such as Apple TV+ and music streaming, for an unprecedented amount. precedent of $20 billion. .

Apple now has 825 million paying customers across its various platforms, up from 785 million in the previous quarter. Streaming video pioneer Netflix recently lost subscribers. There is “continued strong demand for our products,” chief financial officer Luca Maestri wrote. Global smartphone revenue rose 5.5 percent to $50.6 billion, again accounting for more than half of group revenue. As one of the few smartphone vendors, Apple launched a new model with the iPhone 13 over the holiday season and has been winning on it ever since, as well as the new 5G-capable iPhone SE. Earnings jumped almost 8 percent to $25 billion. The stock gained a good two percent in after-hours trading.

According to Maestri, the Russian invasion of Ukraine is also affecting Apple, as the company has withdrawn from Russia. He did not want to give an exact number, but said the impact would be greater in the current quarter. Maestri also did not want to give an overview of the business. New lockdowns in China and Taiwan, where many Apple components are made, could cause delivery problems again.

However, the world’s largest smartphone maker, Samsung Electronics, expects mobile phone demand to rise in the current quarter, especially for its foldable models, despite inflationary pressure and recent coronavirus lockdowns. Despite continued high reliance on the iPhone, consumers are also demanding other Apple devices. Mac computers are benefiting from the trend toward hybrid work between the office and the home office. Mac sales rose nearly 15 percent to $10.4 billion. Revenue from speakers, watches and headphones rose 12 percent to $8.8 billion, slightly below expectations.