Apple sets yet another Q2 revenue record, raises dividend
Apple, a company that’s been declared doomed since the 70’s including similar dark prognostication earlier this week, just set fresh revenue records even as we know it has more innovation coming down the pipe.
What are the revenue highlights?
Apple announced some significant highlights.
- Revenue climbed 9% to reach a new March quarter record at $997.3 billion.
- Profit was $25 billion.
- iPhone: $50.57b, up 5.5%.
- Mac: $10.43b, up 14.3%
- iPad: $7.65b (down 2.2%)
- Wearables: $8.82b, up 12.2%.
- Services revenue reached a new high of $19.82b, up 12.2%.
- Apple now has 825 million services subscribers – up 165 million in the last 12-months.
- Apple’s board of directors has declared a cash dividend of $0.23, up 5%. It is payable May 12 to shareholders of record as of May 9.
- $90 billion added to share repurchase program.
- Apple also said its active install base hit a new all-time high during the quarter.
What did we learn?
Cook confirmed earlier news from Counterpoint sharing that supply chain constraints are improving but admitted a ‘significant impact’ on iPad sales. He predicted continued challenges in the current quarter.
Cook also said the iPhone 13 attracted record levels of upgraders in the quarter and claimed the number of people dumping Android for iPhone also climbed. The latest survey of U.S. Consumers from 451 Research claims iPhone customer satisfaction of 99% for the iPhone 13 family, the company said.
Apple also revealed that the last seven have been the best ever seven quarters for the Mac, with new records for upgraders in March quarter. In addition to which almost half of the customers purchasing a Mac were new to the Mac. Over half of those buying an iPad were new to that, the company said, and two thirds of those buying a watch.
Apple’s enterprise news nuggets features Alaska Airlines, which is replacing conventional airport self-service kiosks with iPad Pros for faster passenger check-in and self bag drop. Also the Western Australia police force’s adoption of CarPlay across its entire fleet of vehicles, as reported here.
There was also a great deal of discussion around component supply, logistics and the supply chain, which I’ll look at later.
What CEO Tim Cook said
“This quarter’s record results are a testament to Apple’s relentless focus on innovation and our ability to create the best products and services in the world,” said Tim Cook, Apple’s CEO.
“We are delighted to see the strong customer response to our new products, as well as the progress we’re making to become carbon neutral across our supply chain and our products by 2030. We are committed, as ever, to being a force for good in the world — both in what we create and what we leave behind.”
Apple published its 2022 Environmental Progress Report around Earth Day 22.
[Also read: Apple as a service could yield $5k/year from some customers]
What CFO, Luca Maestri said
“We are very pleased with our record business results for the March quarter, as we set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories. Continued strong customer demand for our products helped us achieve an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO.
“Our strong operating performance generated over $28 billion in operating cash flow, and allowed us to return nearly $27 billion to our shareholders during the quarter.”
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