Apple records its best-ever March quarter with $25bn profit
What's the story
The first calendar quarter of 2022 hasn't been the best for everyone. But Apple isn't everyone. The Cupertino-based company has announced that it had the best March quarter in its history. Driven by record numbers for iPhones, MacBooks, and Services, the company posted a revenue of $97.3 billion in its second fiscal quarter of 2022. The net profit for the quarter was $25 billion.
Context
Why does this story matter?
With supply issues, Russia-Ukraine crisis, and increasing lockdowns in China, the Q1 of 2022 was not smooth sailing for companies around the world. Only a few of them managed to outperform expectations. Apple belongs to the latter. It is safe to assume that the company went even beyond internal calculations. Is it sustainable? Well, that's for us to wait and watch.
Quarterly report
Apple made a net profit of $25 billion last quarter
In Q2 of 2022, Apple made $97.3 billion in revenue with a $25 billion net profit, compared to $89.6 billion and $23.6 billion, respectively, same time last year. The earnings per share stood at $1.52. The company's Services category had a great quarter as the subscriber number went up to 825 million. Similarly, iPhone, Mac, and Wearables too set March quarter records.
Product performance
Mac posted a seventh consecutive successful quarter
Apple's growth in its second fiscal quarter of 2022 can be attributed to the performance of various products and services. MacBook continued its upward trajectory by posting a seventh consecutive record quarter. iPhone too posted impressive numbers with the revenue up by 5% from the year-ago quarter. On the other hand, supply constraints led to a slowdown in iPad sales.
Challenges
Lockdowns in China will amplify already existing supply issues
Despite the great quarter it had, Apple is not without challenges. With the lockdown in China getting stricter day by day, it is futile to expect the supply constraints to let up anytime soon. The company is already experiencing shipping delays when it comes to its Mac line-up. It also faces challenges to its control over the iPhone ecosystem from lawmakers and laws.