Apple has released its earnings for the last financial quarter, and as expected, it is massive. The company took in $25 billion in profit in the first three months of 2022.
The last quarter has proven to be the best March three-month period for Apple, the world’s biggest company by market capitalization. The Cupertino-based firm raked in $25 billion in profit on top of revenue totaling $97 billion.
Apple set new records in its iPhone, Mac, and Wearables/Home/Accessories businesses. The Mac division was special, as it recorded the 7th consecutive quarter of increasing sales.
Apple reported that its services now have 825 million subscribers. However, the iPad line saw a slight decline, which CEO Tom Cook attributed to supply chain issues.
It is not surprising that iPhone revenue grew. Apple launched the third-gen iPhone SE in the last quarter, and while sales might not have reached Apple’s expectations, they boosted the overall numbers significantly. Apple also released green colored iPhone 13 and iPhone 13 Pro.
In other product releases, Apple began selling the new Mac Studio desktop and 5K Studio Display, an external monitor.
Apple did say in January that the supply chain challenges would ease in the first quarter of 2022. However, the problems might return thanks to the new strict lockdowns in China to deal with another round of Covid infections. This will become more apparent in the next few months.
One side of Apple’s business already facing shipping delays is the Mac line. Buyers making new orders now have to wait till the end of July for delivery if they want the new Mac Studio with the M1 Ultra semiconductor. Even the MacBook Pro of 14 and 16 inches screen won’t be delivered until June.
“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,” said Tim Cook, Apple’s CEO. “We are delighted to see the strong customer response to our new products, as well as the progress we’re making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world — both in what we create and what we leave behind.”
“We are very pleased with our record business results for the March quarter, as we set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home, and Accessories. Continued strong customer demand for our products helped us achieve an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “Our strong operating performance generated over $28 billion in operating cash flow, and allowed us to return nearly $27 billion to our shareholders during the quarter.”
Apple will host its next Worldwide Developers Conference in June, where it will showcase the next major updates to its operating systems, including the iOS, iPadOS, macOS, watchOS, and tvOS. Only a handful of guests will attend in person at Apple’s main campus. The rest of the attendees will join online like Apple has done for the past two years, thanks to Covid-19.
Meanwhile, Apple is arguably facing the most challenging period in its history regarding regulations. It may soon be compelled by the EU to let iPhone users side-load apps on their phones and even permit third-party app stores. Apple is also being forced to allow app developers to use their own payment methods instead of the one baked in, allowing Apple to take a 30 percent cut.