Apple tops earnings expectations on strong iPhone sales
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Apple CEO Tim Cook, presiding over the opening of a remodeled store in Los Angeles. Photo: Mario Tama/Getty Images
Buoyed by strong sales of the iPhone 13, Apple on Thursday reported record quarterly revenue and earnings that were well ahead of Wall Street expectations.
Why it matters: Apple is seen as a bellwether for the broader tech economy. Given Apple's size, a good quarter for it often means good quarters for lots of other companies who supply its needed components.
Between the lines: Apple managed to top expectations despite supply chain issues that hampered others in the tech industry and beyond. It's nearly $124 billion in revenue was up 11 percent from the prior year and greater than the company expected heading into the quarter, CEO Tim Cook told analysts.
- Apple saw sales up in all regions and across all of its products, except for the iPad which the company had said it expected to be impacted by supply constraints.
- Apple shares climbed in after hours trading, changing hands recently at $164.41, up $5.19, or more than 3 percent.
- Cook told CNBC that he expects "solid year-over-year revenue growth” for the current quarter, which runs through March. “And we expect supply constraints in the March quarter to be less than they were in the December quarter," Cook said.
By the numbers:
- Revenue: $123.9 million (compared to $119 million expected, per Bloomberg)
- Per-share earnings $2.10 (versus $1.90 analyst consensus, per Bloomberg)
- iPhone revenue: $71.6 billion (versus $67.7 billion expected)
- iPad revenue: $7.25 billion (versus $8.1 billion expected)
- Mac revenue: $10.8 billion (versus $9.5 billion expected)
- Services revenue: $19.5 billion (versus $18.6 billion expected)
What they're saying: Asked on the conference call how Apple sees the metaverse, Cook pointed to the 14,000 AR-enabled apps already in the iOS App Store.
- "We see a lot of potential in this space and are investing accordingly," Cook said.
Cook also said that Apple is seeing evidence of inflation, especially in the cost of moving goods around.
- "I would hope at least a portion of that is transitory but the world has changed, so we will see."
