Apple Reports Impressive Quarterly Results, Tim Cook Says The Covid-related China Lockdowns Didn’t Affect The Company In The Quarter

For the fiscal second quarter, Apple reported earnings per share of $1.52 compared to the estimate of $1.43 that analysts had forecasted. Revenue for the quarter was up 8.59 percent YoY and came in at $97.28 billion. Analysts had forecast revenue of $93.89 billion for the quarter. Revenue for iPhone came in at $50.57 billion compared to analysts’ estimate of $47.88 billion and was up 5.5 percent YoY. Services revenue was up 17.28 percent YoY. Analysts estimated $19.72 billion for services revenue and Apple reported $19.82 billion in services revenue. Other Products revenue was up 12.37 percent YoY but fell short of analyst expectation of $9.05 billion and came in at $8.81 billion. Mac revenue came in at $10.44 billion compared to $9.25 billion estimated by analysts and was up 14.73 percent YoY. iPad revenue was $7.65 billion compared to $7.14 billion estimated and was down 1.92 percent YoY.

Gross margin was 43.7 percent compared to the 43.1 percent estimated for the quarter.

The company failed to provide guidance for the ongoing quarter and cited uncertainties as a result of the pandemic and other challenges.

Apple also reported that its board of directors gave authorization for a share buyback of $90 billion. The company increased its dividend by 5 percent to 23 cents per share.

In the fiscal second quarter, Apple’s smartphone business grew more than 5 percent indicating that its iPhone 13 series is making good sales. CEO Tim Cook said that the company has a successful quarter with sales to people who were switching to iPhone from Android smartphones for the first time. “We had a record level of upgraders during the quarter and we grew switchers, strong double digits,” he said.

Its sales of Mac computers have continued to grow since it switched to its in-house chip called the M1 chips. Sales were up almost 15 percent YoY to $10.44 billion.

The same could not be said for its iPad business. Sales were down 2.1 percent YoY. The company’s CEO said the segment had “very significant supply constraints” during the quarter. 

Its services business remained profitable growing over 17 percent in the quarter.

Apple’s financial performance was “better than we anticipated,” CEO Tim Cook said adding that the covid-related China lockdowns didn’t affect the company in the quarter.