Apple's single-quarter revenue reached a new high Chip supply crisis has been eliminated?

Beijing, January 29 (Reporter Huang Angjin) On January 28, Beijing time, Apple (hereinafter referred to as "Apple") announced its financial report for the first quarter of fiscal 2022 (October to December 2021).

According to the financial report, from October to December 2021, Apple's revenue was $123.95 billion, an increase of 11% year-on-year, the highest single-quarter revenue in history; net profit was $34.63 billion, an increase of 20.43% year-on-year; gross profit margin was 43.8%, both higher than market expectations.

Affected by the earnings news, Apple's stock price rose sharply after hours. As of the close of trading on January 28, Eastern Time, Apple's stock price was reported at $170.33 per share, up 6.98%, with a total market value of $2.78 trillion.

However, according to Apple CEO Tim Cook, while facing a record single-quarter earnings report, Apple is still facing supply chain problems. "Our biggest problem is chip supply," Cook noted, noting that it's mainly the lower-end chip supply that has challenges, rather than the powerful core processors in flagship phones.

At the same time, Apple's CFO also pointed out that "very serious supply constraints" led to a shortage of iPads, and the supply chain problems mainly lie in the shortage of chips in older models; the supply chain problems were alleviated this quarter due to continuous cooperation with suppliers; and the supply chain problems caused more than $6 billion in losses in the quarter.

So, what is the reason for Apple's excellent performance this quarter? What impact will supply chain issues have on Apple?

Specifically, from October to December 2021, Apple's iPhone revenue was $71.63 billion, up 9% year-on-year; Mac revenue was $10.85 billion, up 25% year-on-year; wearable devices, home, and peripherals revenue was $14.70 billion, up 13% year-on-year; and service revenue was $19.52 billion, up 24% year-on-year. However, iPad revenue was $7.25 billion, down 14 percent year-over-year.

(Screenshot from Apple's earnings report)

Sun Yanbiao, president of the First Mobile Phone Industry Research Institute, told the Central Broadcasting Network reporter that in general, the current shortage of mobile phone chips has eased. Apple's iPad revenue fell year-on-year, and more importantly, it was due to market competition. "For example, while the mobile phone business of domestic OPPO, vivo and other manufacturers is developing rapidly, its tablet computers and other products are also pressing forward step by step, which has brought pressure to Apple."

Xiang Ligang, an expert in the communications industry, also told reporters, "Now the chip supply problem is not so serious, and the reasons for this can be compared with the reasons for the chip shortage, that is, the sudden new crown pneumonia epidemic in early 2020, the heavy snow in Texas in early 2021, and the sanctions of the United States, which have disrupted the rhythm of chip supply." And these problems will be basically solved by the end of this year and next year. ”

In addition, Sun Yanbiao believes that the so-called "lower-end chip supply" problem, on the one hand, is a kind of statement by Apple to enhance market confidence, that is, "in order to show that after the supply chain problems that are not serious have improved, Apple's performance growth will be better, so that the fundamentals are good, which will be conducive to the rise of Apple's stock price and market value." "On the other hand, we can see Apple's plan to develop the low-end market." For example, in India, it is not that people are reluctant to buy iPhones, but that iPhones are too expensive. At the same time, it is foreseeable that Chinese mobile phone manufacturers such as Xiaomi, OPPO, and Vivo will become increasingly powerful, which will bring challenges to Apple's layout of the Indian market. ”

Sun Yanbiao also pointed out that Apple's mobile phone performance growth in the first quarter of fiscal 2022 is mainly "without resistance from Huawei", "especially in the high-end market, although domestic brands are also benchmarking high-end products, it will take time to form competition for the iPhone." ”