New products

Apple’s second-quarter profit rises on new products and services

Apple reported a 5.8% annual jump in net profit in the second fiscal quarter as the company posted record revenue in the March quarter.

The Cupertino-based company’s net profit in the period ending March 26 jumped to more than $25 billion. That’s about $10 billion or 28.5% less than the holiday quarter that ended Dec. 26.

Revenue rose 8.6% year-on-year to $97.3 billion in the quarter, beating analyst estimates of $93.8 billion. It was down almost 21.5% on a quarterly basis.

The record results this quarter are a testament to “the company’s relentless focus on innovation and our ability to create the best products and services in the world,” said Apple Chief Executive Officer Tim Cook.

But Mr Cook said the company was “not immune” to global supply chain challenges.

The company’s chief financial officer, Luca Maestri, said supply chain friction would reduce Apple’s sales in the current quarter by $4 billion and down to $8 billion. It will be “significantly greater” than its impact in the last quarter.

Share prices fell more than 3.6% to $157.65 per share after hours trading.

Apple’s sales in all product categories, except iPads, recorded year-on-year growth.

iPhone sales account for about 52% of the company’s total revenue. Smartphone sales jumped nearly 5.5% to $50.5 billion in the quarter from the year-ago period, beating analyst estimates of $47.8 billion.

The company’s total revenue in the services segment grew approximately 17.3% annually to $19.8 billion. This segment contributed nearly 20.4% to the company’s overall sales. It was also an all-time quarterly revenue record for services in company history.

Clothing, home and accessories revenues grew nearly 12.4% annually to more than $8.8 billion. Mac computer sales jumped more than 14.5% to more than $10.4 billion last quarter.

iPad tablets were the only segment to see a decline in quarterly sales, contributing $7.6 billion to sales, down more than 2% on an annual basis.

To attract more customers, Apple launched a slew of new products last month, including its cheapest iPhone, an improved tablet, the company’s most powerful chip for personal computers and a new Mac Studio for business users. .

“We are delighted to see the strong customer response to our new products, as well as the progress we are making towards becoming carbon neutral in our supply chain and products by 2030,” Cook said.

Mr Cook, who has run one of the world’s most beloved tech companies since 2011, earned more than $98.7million in salary last year, more than six times his $14.7million salary. dollars in 2020, according to a statement the Cupertino-based company filed with US Securities. and Exchange Commission said.

Apple’s sales in the Americas accounted for about 42% of the company’s total revenue in the second quarter and brought in $40.8 billion in the region.

It was followed by Europe and the Greater China market (China, Hong Kong and Taiwan), which added $23.3 billion and $18.3 billion to the company’s revenue, respectively. .

Japan and the rest of the Asia-Pacific market added $14.8 billion to Apple’s second-quarter sales, a year-on-year decline of 3.4%.

People visit the Apple store in Grand Central Station on April 18 in New York.  AFP

“We are very pleased with our record business results for the March quarter…continued strong customer demand for our products has helped us reach an all-time high for our installed base of active devices,” said Mr. Maestri. .

During the March quarter, Apple returned nearly $27 billion to shareholders, generating $28 billion in operating cash flow.

Apple also announced a cash dividend of $0.23 per common share of the company, an increase of 5%. The dividend is payable May 12 to shareholders of record at the close of business May 9, the company said.

The company’s board also approved a $90 billion increase to the existing stock buyback program, the company said.

During the January-March period, Apple spent nearly $6.4 billion on research and development, or more than 6.5% of its total revenue. It increased by around 21.4% compared to the same period in 2021.

Apple has not released any official guidance on future revenue and earnings. The company stopped offering advice at the start of the Covid-19 pandemic due to business uncertainty.

The company’s cash, cash equivalents and marketable securities totaled more than $51.5 billion as of March 26.

Updated: April 28, 2022, 10:21 p.m.

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