Apple Inc. (NASDAQ: AAPL) exhibited their first quarter results on Friday, beating out analyst expectations, showing that the tech giant was able to navigate the global supply chain issues and profit off their new products, including the iPhone 13, new MacBooks, and the Apple Watch Series 7.
Sales for the first quarter ending December 25 2021 gained 11% to $123.9B, exceeding expectations, suggesting that fears around the supply chain were not felt in Apple’s bottom line. Earnings rose to $2.10 per share, compared to the estimated $1.90.
Last year, Apple CEO, Tim Cook, had warned that the supply chain shortages would cost the Company more than $6B in sales during the global holiday period.
The Company’s flagship product, the iPhone 13, went on sale in September, which helped generate $71.6B in revenue, up 9.2% YoY, succeeding estimates of only $67.7B. Though the iPhone did not seem like a significant technical upgrade, customers were eager to get their hands on an iPhone to maximise the 5G capabilities, which is starting to take over the US telecommunications in a global upgrade.
Among other products, the Company saw huge sales across the board, with their only problem child being the iPad which brought in $7.25B compared to the estimated $8.1B.
The Company launched its most crucial iPad mini upgrade but struggled to get enough supply to market. Other products like the Apple Watch, Apple TV, AirPod’s, and other items produced more than $14.7B in revenue, up 13% from a year earlier and slightly above expectations of $14.2B. This year will be big for Apple in terms of new products, the company is planning to launch a new iPhone SE and iPad Air both with 5G capabilities.
Along with most other big tech companies in the U.S., Apple has seen a 10% decline since the start of the year following fears around interest rate hikes and concerns around sales slowing down for global retailers. Apple shares regained 3.5% after the report.
We could see investors flock to big tech for reassurance after the recent sell-off the NASDAQ and the technology sector are experiencing. With the sector becoming less appealing within the last month, an opportunity will arise with well-positioned companies, including Apple, Netflix and Microsoft.