NEW YORK (Reuters) – Apple Inc reported record sales in the fourth quarter of holiday-season 2021, with profits that beat expectations as it weathered a costly global chip shortage.
Analysts said the iPhone maker, the world’s largest by market value, has handled supply chain challenges such as factory closures and shipping delays caused by the coronavirus pandemic better than its peers.
Apple shares rose about five percent in after-hours trading, offsetting half of its losses over the course of the year. The gains came after the company announced its ambitions in the field of augmented reality.
And the demand for the company’s products, including iPhones, iPads, and others, increased during the fourth quarter than it offered.
However, Apple, the largest customer of many of its suppliers of parts and components, has used its purchasing power to pressure those suppliers to ship enough gadgets to drive record sales of iPhone, Mac and wearable devices, such as smartwatches, and accessories.
Company executives have reported that the lack of chips often affects older models of its products and is slowing iPad sales in particular.
“It gets through supply chain problems better than everyone else, and it shows in the results,” said Ryan Reith, who studies the smartphone market.
iPhone 13 in the lead
Apple said the four best-selling phones in urban China were all iPhone models, with competitors finding it difficult to offer competing products. And Counterpoint Research reported on Wednesday that Apple was the top-selling company in China for the first time in six years.
Apple’s growing sales of services such as music, TV and fitness subscriptions are also helping to cushion the impact of a low supply of devices.
The company said it currently has 785 million subscribers across at least seven subscription services and apps, up 40 million from the previous quarter at a time when rivals such as Netflix are seeing slower growth.
Apple’s chief financial officer Luca Maestri told Reuters that the decline in the chip shortage means less than $6 billion in lost revenue in the current quarter. But he refused to provide further estimates for the future.
“The level of shortage will depend a lot on other companies, and on the volume of demand for chips from other companies and industries,” he added.
The iPhone 13, which was launched a few days before the beginning of the fourth quarter of 2021, led Apple’s global sales of phones with revenues of $71.6 billion, an increase of nine percent over the 2020 holiday season, which easily exceeded Wall Street expectations, according to Refinitiv data.
Maestri attributed the sales surge to a record number of updates in new iPhones and a double-digit increase in the number of people switching to Apple products after using competitors’ devices.
pessimistic forecast
Apple’s total revenue in the first quarter of the fiscal year was $123.9 billion, up 11 percent from a year ago and above the average analyst estimate of $118.7 billion. Earnings amounted to $34.6 billion, or $2.10 per share, compared to analyst expectations of $31 billion and $1.89 per share.
Maestri warned that revenue growth will slow in the current quarter compared to the fourth quarter of last year due to less favorable foreign exchange rates and different product launch dates.
The only iPads from the company were below expectations. Its sales fell 14 percent to $7.25 billion, compared with analysts’ estimates of $8.2 billion, apparently confirming industry expectations that tablets would be a low priority for any under-supplied components.
Other major sectors in Apple beat Wall Street estimates. Revenue from services and apps, Apple’s second-largest segment after the iPhone, rose 24 percent to $19.5 billion.
Mac computer revenue also rose 25% to $10.9 billion, and Apple said the past six quarters have been the best for Mac sales.
Sales of wearable devices and accessories, including the new Air Tag tracking device, also increased 13% to $14.7 billion.
The Corona pandemic has accelerated the reliance on digital tools for communication, learning and entertainment, prompting Apple to increase sales over the past two years.
But this year, investors are shifting money toward safer assets and away from technology stocks like Apple, which have surged during the pandemic as people spend more time online.
world of metaverse
There are questions on Wall Street about how long it will take for Apple to introduce its next big product, such as an augmented reality headset, to enter the world of Metaverse.
“We see a lot of potential in this area and are investing accordingly,” CEO Tim Cook told investors Thursday.
The world’s largest company by market capitalization has 14,000 AR apps on its App Store, and Cook suggested that number would rise with more investment.
And revealed the features of the company’s plans for the world of metaverse, and Cook announced the expansion of the company’s applications for augmented reality, which was a positive response to investors.
“We see a lot of potential in this area and we’re investing accordingly,” Cook said, when asked about Apple’s plans for metaverses, a broad term that generally refers to shared virtual world environments that people can access online.
And Apple analyst Ming-Chi Kuo and Bloomberg talked about the company’s plans to introduce a headset for augmented reality applications this year or next, with glasses used in this regard to follow later.
NEW YORK (Reuters) – Apple Inc reported record sales in the fourth quarter of holiday-season 2021, with profits that beat expectations as it weathered a costly global chip shortage.
Analysts said the iPhone maker, the world’s largest by market value, has handled supply chain challenges such as factory closures and shipping delays caused by the coronavirus pandemic better than its peers.
Apple shares rose about five percent in after-hours trading, offsetting half of its losses over the course of the year. The gains came after the company announced its ambitions in the field of augmented reality.
And the demand for the company’s products, including iPhones, iPads, and others, increased during the fourth quarter than it offered.
However, Apple, the largest customer of many of its suppliers of parts and components, has used its purchasing power to pressure those suppliers to ship enough gadgets to drive record sales of iPhone, Mac and wearable devices, such as smartwatches, and accessories.
Company executives have reported that the lack of chips often affects older models of its products and is slowing iPad sales in particular.
“It gets through supply chain problems better than everyone else, and it shows in the results,” said Ryan Reith, who studies the smartphone market.
iPhone 13 in the lead
Apple said the four best-selling phones in urban China were all iPhone models, with competitors finding it difficult to offer competing products. And Counterpoint Research reported on Wednesday that Apple was the top-selling company in China for the first time in six years.
Apple’s growing sales of services such as music, TV and fitness subscriptions are also helping to cushion the impact of a low supply of devices.
The company said it currently has 785 million subscribers across at least seven subscription services and apps, up 40 million from the previous quarter at a time when rivals such as Netflix are seeing slower growth.
Apple’s chief financial officer Luca Maestri told Reuters that the decline in the chip shortage means less than $6 billion in lost revenue in the current quarter. But he refused to provide further estimates for the future.
“The level of shortage will depend a lot on other companies, and on the volume of demand for chips from other companies and industries,” he added.
The iPhone 13, which was launched a few days before the beginning of the fourth quarter of 2021, led Apple’s global sales of phones with revenues of $71.6 billion, an increase of nine percent over the 2020 holiday season, which easily exceeded Wall Street expectations, according to Refinitiv data.
Maestri attributed the sales surge to a record number of updates in new iPhones and a double-digit increase in the number of people switching to Apple products after using competitors’ devices.
pessimistic forecast
Apple’s total revenue in the first quarter of the fiscal year was $123.9 billion, up 11 percent from a year ago and above the average analyst estimate of $118.7 billion. Earnings amounted to $34.6 billion, or $2.10 per share, compared to analyst expectations of $31 billion and $1.89 per share.
Maestri warned that revenue growth will slow in the current quarter compared to the fourth quarter of last year due to less favorable foreign exchange rates and different product launch dates.
The only iPads from the company were below expectations. Its sales fell 14 percent to $7.25 billion, compared with analysts’ estimates of $8.2 billion, apparently confirming industry expectations that tablets would be a low priority for any under-supplied components.
Other major sectors in Apple beat Wall Street estimates. Revenue from services and apps, Apple’s second-largest segment after the iPhone, rose 24 percent to $19.5 billion.
Mac computer revenue also rose 25% to $10.9 billion, and Apple said the past six quarters have been the best for Mac sales.
Sales of wearable devices and accessories, including the new Air Tag tracking device, also increased 13% to $14.7 billion.
The Corona pandemic has accelerated the reliance on digital tools for communication, learning and entertainment, prompting Apple to increase sales over the past two years.
But this year, investors are shifting money toward safer assets and away from technology stocks like Apple, which have surged during the pandemic as people spend more time online.
world of metaverse
There are questions on Wall Street about how long it will take for Apple to introduce its next big product, such as an augmented reality headset, to enter the world of Metaverse.
“We see a lot of potential in this area and are investing accordingly,” CEO Tim Cook told investors Thursday.
The world’s largest company by market capitalization has 14,000 AR apps on its App Store, and Cook suggested that number would rise with more investment.
And revealed the features of the company’s plans for the world of metaverse, and Cook announced the expansion of the company’s applications for augmented reality, which was a positive response to investors.
“We see a lot of potential in this area and we’re investing accordingly,” Cook said, when asked about Apple’s plans for metaverses, a broad term that generally refers to shared virtual world environments that people can access online.
And Apple analyst Ming-Chi Kuo and Bloomberg talked about the company’s plans to introduce a headset for augmented reality applications this year or next, with glasses used in this regard to follow later.
NEW YORK (Reuters) – Apple Inc reported record sales in the fourth quarter of holiday-season 2021, with profits that beat expectations as it weathered a costly global chip shortage.
Analysts said the iPhone maker, the world’s largest by market value, has handled supply chain challenges such as factory closures and shipping delays caused by the coronavirus pandemic better than its peers.
Apple shares rose about five percent in after-hours trading, offsetting half of its losses over the course of the year. The gains came after the company announced its ambitions in the field of augmented reality.
And the demand for the company’s products, including iPhones, iPads, and others, increased during the fourth quarter than it offered.
However, Apple, the largest customer of many of its suppliers of parts and components, has used its purchasing power to pressure those suppliers to ship enough gadgets to drive record sales of iPhone, Mac and wearable devices, such as smartwatches, and accessories.
Company executives have reported that the lack of chips often affects older models of its products and is slowing iPad sales in particular.
“It gets through supply chain problems better than everyone else, and it shows in the results,” said Ryan Reith, who studies the smartphone market.
iPhone 13 in the lead
Apple said the four best-selling phones in urban China were all iPhone models, with competitors finding it difficult to offer competing products. And Counterpoint Research reported on Wednesday that Apple was the top-selling company in China for the first time in six years.
Apple’s growing sales of services such as music, TV and fitness subscriptions are also helping to cushion the impact of a low supply of devices.
The company said it currently has 785 million subscribers across at least seven subscription services and apps, up 40 million from the previous quarter at a time when rivals such as Netflix are seeing slower growth.
Apple’s chief financial officer Luca Maestri told Reuters that the decline in the chip shortage means less than $6 billion in lost revenue in the current quarter. But he refused to provide further estimates for the future.
“The level of shortage will depend a lot on other companies, and on the volume of demand for chips from other companies and industries,” he added.
The iPhone 13, which was launched a few days before the beginning of the fourth quarter of 2021, led Apple’s global sales of phones with revenues of $71.6 billion, an increase of nine percent over the 2020 holiday season, which easily exceeded Wall Street expectations, according to Refinitiv data.
Maestri attributed the sales surge to a record number of updates in new iPhones and a double-digit increase in the number of people switching to Apple products after using competitors’ devices.
pessimistic forecast
Apple’s total revenue in the first quarter of the fiscal year was $123.9 billion, up 11 percent from a year ago and above the average analyst estimate of $118.7 billion. Earnings amounted to $34.6 billion, or $2.10 per share, compared to analyst expectations of $31 billion and $1.89 per share.
Maestri warned that revenue growth will slow in the current quarter compared to the fourth quarter of last year due to less favorable foreign exchange rates and different product launch dates.
The only iPads from the company were below expectations. Its sales fell 14 percent to $7.25 billion, compared with analysts’ estimates of $8.2 billion, apparently confirming industry expectations that tablets would be a low priority for any under-supplied components.
Other major sectors in Apple beat Wall Street estimates. Revenue from services and apps, Apple’s second-largest segment after the iPhone, rose 24 percent to $19.5 billion.
Mac computer revenue also rose 25% to $10.9 billion, and Apple said the past six quarters have been the best for Mac sales.
Sales of wearable devices and accessories, including the new Air Tag tracking device, also increased 13% to $14.7 billion.
The Corona pandemic has accelerated the reliance on digital tools for communication, learning and entertainment, prompting Apple to increase sales over the past two years.
But this year, investors are shifting money toward safer assets and away from technology stocks like Apple, which have surged during the pandemic as people spend more time online.
world of metaverse
There are questions on Wall Street about how long it will take for Apple to introduce its next big product, such as an augmented reality headset, to enter the world of Metaverse.
“We see a lot of potential in this area and are investing accordingly,” CEO Tim Cook told investors Thursday.
The world’s largest company by market capitalization has 14,000 AR apps on its App Store, and Cook suggested that number would rise with more investment.
And revealed the features of the company’s plans for the world of metaverse, and Cook announced the expansion of the company’s applications for augmented reality, which was a positive response to investors.
“We see a lot of potential in this area and we’re investing accordingly,” Cook said, when asked about Apple’s plans for metaverses, a broad term that generally refers to shared virtual world environments that people can access online.
And Apple analyst Ming-Chi Kuo and Bloomberg talked about the company’s plans to introduce a headset for augmented reality applications this year or next, with glasses used in this regard to follow later.
NEW YORK (Reuters) – Apple Inc reported record sales in the fourth quarter of holiday-season 2021, with profits that beat expectations as it weathered a costly global chip shortage.
Analysts said the iPhone maker, the world’s largest by market value, has handled supply chain challenges such as factory closures and shipping delays caused by the coronavirus pandemic better than its peers.
Apple shares rose about five percent in after-hours trading, offsetting half of its losses over the course of the year. The gains came after the company announced its ambitions in the field of augmented reality.
And the demand for the company’s products, including iPhones, iPads, and others, increased during the fourth quarter than it offered.
However, Apple, the largest customer of many of its suppliers of parts and components, has used its purchasing power to pressure those suppliers to ship enough gadgets to drive record sales of iPhone, Mac and wearable devices, such as smartwatches, and accessories.
Company executives have reported that the lack of chips often affects older models of its products and is slowing iPad sales in particular.
“It gets through supply chain problems better than everyone else, and it shows in the results,” said Ryan Reith, who studies the smartphone market.
iPhone 13 in the lead
Apple said the four best-selling phones in urban China were all iPhone models, with competitors finding it difficult to offer competing products. And Counterpoint Research reported on Wednesday that Apple was the top-selling company in China for the first time in six years.
Apple’s growing sales of services such as music, TV and fitness subscriptions are also helping to cushion the impact of a low supply of devices.
The company said it currently has 785 million subscribers across at least seven subscription services and apps, up 40 million from the previous quarter at a time when rivals such as Netflix are seeing slower growth.
Apple’s chief financial officer Luca Maestri told Reuters that the decline in the chip shortage means less than $6 billion in lost revenue in the current quarter. But he refused to provide further estimates for the future.
“The level of shortage will depend a lot on other companies, and on the volume of demand for chips from other companies and industries,” he added.
The iPhone 13, which was launched a few days before the beginning of the fourth quarter of 2021, led Apple’s global sales of phones with revenues of $71.6 billion, an increase of nine percent over the 2020 holiday season, which easily exceeded Wall Street expectations, according to Refinitiv data.
Maestri attributed the sales surge to a record number of updates in new iPhones and a double-digit increase in the number of people switching to Apple products after using competitors’ devices.
pessimistic forecast
Apple’s total revenue in the first quarter of the fiscal year was $123.9 billion, up 11 percent from a year ago and above the average analyst estimate of $118.7 billion. Earnings amounted to $34.6 billion, or $2.10 per share, compared to analyst expectations of $31 billion and $1.89 per share.
Maestri warned that revenue growth will slow in the current quarter compared to the fourth quarter of last year due to less favorable foreign exchange rates and different product launch dates.
The only iPads from the company were below expectations. Its sales fell 14 percent to $7.25 billion, compared with analysts’ estimates of $8.2 billion, apparently confirming industry expectations that tablets would be a low priority for any under-supplied components.
Other major sectors in Apple beat Wall Street estimates. Revenue from services and apps, Apple’s second-largest segment after the iPhone, rose 24 percent to $19.5 billion.
Mac computer revenue also rose 25% to $10.9 billion, and Apple said the past six quarters have been the best for Mac sales.
Sales of wearable devices and accessories, including the new Air Tag tracking device, also increased 13% to $14.7 billion.
The Corona pandemic has accelerated the reliance on digital tools for communication, learning and entertainment, prompting Apple to increase sales over the past two years.
But this year, investors are shifting money toward safer assets and away from technology stocks like Apple, which have surged during the pandemic as people spend more time online.
world of metaverse
There are questions on Wall Street about how long it will take for Apple to introduce its next big product, such as an augmented reality headset, to enter the world of Metaverse.
“We see a lot of potential in this area and are investing accordingly,” CEO Tim Cook told investors Thursday.
The world’s largest company by market capitalization has 14,000 AR apps on its App Store, and Cook suggested that number would rise with more investment.
And revealed the features of the company’s plans for the world of metaverse, and Cook announced the expansion of the company’s applications for augmented reality, which was a positive response to investors.
“We see a lot of potential in this area and we’re investing accordingly,” Cook said, when asked about Apple’s plans for metaverses, a broad term that generally refers to shared virtual world environments that people can access online.
And Apple analyst Ming-Chi Kuo and Bloomberg talked about the company’s plans to introduce a headset for augmented reality applications this year or next, with glasses used in this regard to follow later.