Thanks to the power of the iPhone, Apple is defying consumer restraint. In the past quarter, the group increased sales by eight percent year-on-year to $90.1 billion (EUR 90.4 billion). In short, profits increased from $20.55 to $20.72 billion. Apple is breaking away from developments at other tech giants, which are being hit by falling advertising spending or economic concerns.
At the same time, CFO Luca Maestri limited that revenue growth in the current quarter will be lower than the eight percent of the past three months. The main trigger is the strong dollar, which will reduce income by up to ten percent when converted to US currency. The vacation quarter is traditionally the most important thing for Apple.
The iPhone was a major engine of the company with sales rising from $38.9 billion to $42.6 billion. As usual, Apple launched the new iPhone generation in September – this time a week earlier than 2021.
iPhone sales likely soared
The group itself does not give numbers. But Apple was the only major carrier to increase sales by eight percent to 53 million iPhones, according to calculations by analytics firm Canalys. Samsung maintained its top position in the market, even after a decline of eight percent to 64.1 million devices. The Chinese providers Oppo and Vivo, on the other hand, sold about a fifth fewer devices. In terms of market share, Samsung now has 22 percent and Apple 18 percent.
PC market is shrinking, Mac business is booming
The Mac computer business grew from about $9.2 billion to a record $11.5 billion amid a rapid contraction in the PC market. According to CEO Tim Cook, this was partly due to a large accumulated demand for production losses in the spring. For the current quarter, CFO Maestri also announced a significant drop in sales, primarily attributable to the fact that the launch of popular new models boosted sales in the quarter of the year.
However, with the iPad, revenue dropped from $8.25 to nearly $7.2 billion. Here too, Apple referred to comparative effects – in the same quarter last year there was a special boom due to new models. The semiconductor bottlenecks, which have partially slowed business in recent years, are no longer relevant, Cook said.
For many customers, it is the first Apple device
Apple especially emphasized that the devices continued to attract many new customers. It was the first such device for more than every second Mac and iPad buyer. More than two-thirds of the Apple Watch were new buyers. With more new customers, Apple can hope for more replacement purchases and additional subscriptions.
In the service sector, revenue rose five percent to $19.2 billion — growing more slowly than before. There were business weaknesses with ads and games in the App Store, Maestri said.
Through services such as Apple Music or offers such as online storage space, the group now receives funding for 900 million subscriptions – 50 million more than twelve months ago. The company has reserves of $169 billion against a debt of $120 billion.
In Europe, where Apple recently raised prices for new iPhone models, in some cases significantly given the weak euro, quarterly revenue grew from $20.8 billion to $22.8 billion. The quarter ended Apple’s fiscal year with total revenue growth of eight percent to $394.3 billion. Profits rose five percent to $99.8 billion.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
