Many investors have been waiting for these results. Inflationary pressures around the world, global increases in raw material prices, and related supply chain disruptions are things that have been causing companies a lot of trouble lately.
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Apple to the rescue
Apple doesn’t seem to have been too affected by this global problem, as they reported revenues of $97.3 billion, up 9 percent year over year.
- Products revenue $77.46 billion, +6.6% y/y, estimate $75.4 billion
- iPhone revenue $50.57 billion, +5.5% y/y, estimate $49.16 billion
- Mac revenue $10.44 billion, +15% y/y, estimate $9.23 billion
- iPad revenue $7.65 billion, -2.1% y/y, estimate $7.19 billion
- Servise revenue $19.82 billion, +17% y/y, estimate $19.78 billion
- Wearables, home and accessories $8.81 billion, +12% y/y, estimate $8.98 billion
- Gross margin $42.56 billion, +12% y/y
- Cash and cash equivalents $28.10 billion, -27% y/y, estimate $35.81 billion
In addition to the results, the company confirmed a dividend increase of 5 cents per share. In addition, Apple plans to support its stock growth by boosting its existing share buyback program. The increase will be about $90 billion.
Apple CEO Tim Cook summed it up simply in the quarterly report:
“This quarter’s record results are a testament to Apple’s relentless focus on innovation and our ability to create the best products and services in the world,”
Issues with regulators
We recently informed you that the European Union is talking about new legislation to regulate big tech companies. This, of course, won’t escape Apple and could mean that developers placing their apps on the Apple Play store could implement their payment methods into the app, which could significantly reduce Apple’s profits in the services business in the future.