China's market demand is strong, the supply chain has withstood the impact of the epidemic, and Apple's sales have exceeded expectations

According to Al Jazeera reported on the 27th, Apple Inc. (Apple Inc) in the United States announced record sales in the holiday season on Thursday (27th), exceeding expectations, because the company benefited from the strong demand for iPhones in the Chinese market, and withstood the restrictions faced by the supply chain and the impact of the new crown epidemic driven by the Aumicron variant.

Al Jazeera reported with picture

According to refinitiv, a financial markets data provider, the iPhone 13, which began shipping a few days before the start of the quarter, generated $71.6 billion in global phone sales revenue for Apple, up 9 percent from the 2020 holiday shopping season, and easily exceeded Wall Street agencies' expected targets, according to Refinitiv, a financial market data provider that began shipping fewer models than rivals listed during the holiday shopping season.

On Wednesday, market research firm Counterpoint Research reported that Apple's smartphone market share in China reached a record 23 percent during the holiday season, becoming the country's best-selling phone maker for the first time in six years.

The company's overall fiscal first-quarter revenue was $123.9 billion, up 11 percent from last year and higher than analyst average estimates of $118.7 billion. Profit was $34.6 billion, or $2.10 per share, higher than analysts' expectations of $31 billion and $1.89.

The COVID-19 pandemic has accelerated the use of digital tools for communication, learning and entertainment, driving Apple's sales in a variety of segments, including computers, accessories and tablets, and achieving a spurt of growth.

But supply chain issues have dragged on for a long time, and there are still concerns about how long it will take Apple to launch its next big product, such as an augmented reality (AR) helmet or an electric car.

Apple experienced a rare revenue decline in the last fiscal quarter ended Sept. 25 last year, which CEO Tim Cook blamed on outbreak-related supply constraints and production disruptions, which together cost the company about $6 billion in sales.

Luca Maestri, the company's chief financial officer, said in an interview with Reuters that "the degree of restriction will largely depend on how much other companies, other companies and other industries will demand for chips." We're hard to predict, so we try to focus on the short term. ”

But Angelo Zino of CFRA Research, a U.S. investment bank, said in a research note that smaller competitors are having trouble keeping up with production, which has led to Apple's market share in regions such as China.

Neil Shah of Market Research said, "Because Apple provides many custom parts for products such as iPhones, Mac computers, Apple Watches, and the scale (quantity and price) of its procurement, Apple has the ability to target suppliers, manufacture these parts in a timely manner, and reduce production delays." ”

According to Reuters, at the end of last year, Apple closed the foundry assembly supplier Foxconn's factory in southern India due to accommodation and food safety standards, and analysts said that the impact of the closure of the Foxconn plant on Apple as a whole was minimal, but in the long run, the factory was strategic because the US technology giant Apple was trying to reduce its dependence on its Chinese supply chain. (Editor: SDY)