According to Apple, COVID- Your business is affected by 19 barriers and a shortage of minerals, although not as hard as some other internet companies. Despite the success of Apple’s Macs and iPads, the iPhone is the company’s most important product. Apple’s iPhone, which is almost 15 years old, is one of the most popular consumer products of all time. It helps Apple to generate revenue and assets over the holidays. Even now, with the war in the Middle East and additional inflation at home, Apple’s terms are still the main focus on the iPhone.
The good news: People are still buying them. For the second quarter of its fiscal year, in the third quarter ending in March, Apple posted $ 50.6 billion in sales of iPhones, more than 5% from a year earlier. Your Mac computers, wearables and accessories continue to sell in power as well. But Apple warns that production and trade disruptions from COVID-19, combined with an ongoing shortage of minerals, mean things could get worse in the next few months.
“These times remind us that we do not know what the future holds,” Apple CEO Tim Cook said during a conference call with analysts on Thursday. COVID interruptions, he notes, are difficult to predict. He noted that disruptions from recent health locks in China, among other things, would add between $ 4 billion and $ 8 billion in unsold goods due to lack of inventory. And that is “much worse” than what happened three months ago. Apple’s stock closed its normal trading volume of nearly 5% to $ 163.64 per share. Corporate shares have fallen by 10% this year.
Apple’s announcement is a new sign of the technological strength of the giant in a time of systemic uncertainty. Major Wall Street indexes have lost value this month, with noticeable departures among tech markets. Google Alphabet parent reported lower-than-expected sales and profits on Tuesday, disappointing investors. The next day, Facebook’s three parents reported increased losses in its Reality Labs division, which introduced virtual reality headsets and other related technologies. CEO Mark Zuckerberg has said he believes Reality Labs is key to the company’s future.
Other technology companies have released data as well. Netflix told investors last week that it was actually losing subscribers, and expects to lose 2 million more. And Amazon on Thursday said oil prices feed into its profits. In the aftermath, Russia’s invasion and the ensuing war with Ukraine have spread around the world, rattling markets for oil, wheat and other commodities both countries contribute to the global economy. Meanwhile, increased COVID-19 cases in China have led to lengthy locks in manufacturing facilities and at ports, disrupting food supplies and local residents, leading to slow production and trade. .
The company reported increased sales for its Mac division, which nearly half of its customers are new to its computers. Apple’s wearables business, meanwhile, has grown to about Fortune 100, the company noted, with more than two-thirds of people buying Apple Watches new to the market.
Apple Corps, which won its first Oscar with the Apple TV Plus CODA movie, rose more than 17% to $ 19.8 billion. That makes services, which also include subscriptions such as Apple Music streaming and Apple Arcade games, the second largest division behind the iPhone. Apple said it counted 825 million accounts with paid subscriptions on its platform, an increase of 17% from the previous year. “We have incorporated many new services, and we plan to incorporate new services and new features that we believe our customers will love,” Apple CFO Luca Maestri told analysts on Thursday.
Overall, Apple said it recorded revenue of $ 25 billion, up nearly 6% from last year. That translates to $ 1.52 per share in profit, off 97.28 billion US dollars in overall revenue, which is up 9% from the $ 89.58 billion reported last year. It also hit analysts ’estimates, which were $ 1.43 in profit per share over $ 93.9 billion in sales for the three months ending March, according to surveys published by Yahoo Finance.