Apple on Wednesday posted sales and profits ahead of Wall Street expectations fueled the development of the iPhone 5G but warned that a global chip shortage could push sales of iPads and Mac for billions of dollars.
China’s second-quarter financial sales nearly doubled and the results included analysts’ goals in all categories, earning $ 6.5 billion (about Rs. 48,270 crores) more than the iPhone sales than predicted and Mac sales were about a third higher than the figures.
Apple also announced a $ 90 billion (approximately Rs. 6,68,300 crores) share return, a day after Alphabet promised to repurchase $ 50 billion (approximately Rs. 371,230 crores) in stock.
Apple CEO Tim Cook said through a call to investors that Apple should avoid chip shortages in the second half of the heat by using supply baths.
In the third quarter, the deficit could cost the company $ 3 billion (about Rs. 22,270 crores) to $ 4 billion (about Rs. 29,700 crores) in revenue, said chief financial officer Luca Maestri.
The bugs “have a huge impact on the iPad and Mac,” Cook said. “We’re going to have some challenges there,” Cook said, adding that there could be a problem finding semiconductors made with old-fashioned technology. That’s the same category of old-fashioned chips chips hitting Ford Motor, which on Wednesday said shortages reduced production by half in the second quarter.
Cook said Apple is competing with other industries in building capacity in those old firms and it is “very difficult,” predicting when the shortage will end, he said.
Maestri said he expects revenue for the quarter ending June to grow by “strong double digits” year-on-year but further declines are typical of revenue between its second and third quarters due to the recent launch of the iPhone 12.
Apple has been successful in the coronavirus epidemic as home-bound consumers are kept on electronic devices and subscribed to paid apps and fitness services and music, and sales have skyrocketed since Apple released the iPhone 5G models last year.
In the second quarter of March 27, Apple said sales and profits were $ 89.6 billion (approximately Rs. 6,65,230 crores) and $ 1.40 (about Rs. 100) per share, compared to an estimated $ 77.4 billion ( approximately Rs. 5,74,650 crores) and 99 cents (approximately Rs. 70) per share, according to Refinitiv data.
IPhone devices were at the forefront of growth, suggesting that consumers are moving towards 5G, said Haris Anwar, senior analyst at Investing.com.
“Incentive testing and successful roll-out of vaccines really helps to increase consumer demand for technology gadgets across the board,” Anwar said.
While Apple’s business is booming, its App Store, one of the fastest-growing businesses, is heavily regarded for antitrust due to Apple’s in-app payment rules and app review policies.
In addition, Facebook warned Wednesday that its growth by the end of the year could be significantly reduced as Apple’s privacy policies would make it harder to target ads.
In the second phase of funding, Mac models and iPad devices – the two product categories Wall Street does not count on to maximize growth – both have benefited from home-based consumers and remote learning. In addition to those styles, Cook said Apple customers are responding strongly to the company’s M1 chip, its first internal computer processor for Mac computers.
“Both of these simultaneous events have highlighted Mac sales. The last three locations on Mac were the three strongest locations in Mac history,” Cook told Reuters.
Apple has raised its 7 percent dividend to 22 cents (approximately Rs. 15) per share.
Apple said iPhone sales were $ 47.9 billion (approximately Rs. 3,55,510 crores) compared to analysts’ estimates of $ 41.4 billion (about Rs. 3,07,270 crores), according to data from FactSet.
Sales of Mac devices and iPad gadgets were $ 9.1 billion (approximately Rs. 67,530 crores) and $ 7.8 billion (approximately Rs. 57,880 crores), respectively, compared to FactSet estimated at $ 6.8 billion (approximately Rs. 50,460 crores) and $ 5.6 billion (approximately Rs. (41,550 crores).
Apple’s investors want to grow from Apple’s service business, which includes products such as AirPod headphones and its new AirTag monitors, as well as its services business, including its App Store and new offerings such as a paid podcast. Category sales were $ 7.8 billion (approximately Rs. 57,850 crores) and $ 16.9 billion (approximately Rs. 1,25,330 crores), respectively, compared to an estimated $ 7.4 billion (approximately Rs. 54,890 crores) and $ 15.5 billion (approximately Rs. 1, 14,970 thousand).
Cook said the company has 660 million paid subscribers on its platform, which is an increase from 620 million in the first quarter.
Apple sales in China’s main financial region in the second quarter of the month, which includes the busy Lunar Monthly buying season, increased by 87.5 percent to $ 17.7 billion (approximately Rs. 1,31,270 crores), compared to a 57 percent increase in the previous quarter. .
Apple shares have risen 93 percent in the past year, compared with a 61 percent increase in the Nasdaq 100 index of which Apple is a part.
