Apple faced supply chain snarls in late 2021 that spurred the global electronics market and other industries, announcing on Thursday that its most recent quarterly revenue growth of 11 percent and profit growth of 20 percent while optimization offers the worst. There were problems behind it.
Apple, the world’s most valuable public company, beat Wall Street analysts’ expectations with its record results, easing fears that the tech industry’s long-term growth is coming to an end. It posted a profit of $ 34.6 billion from $ 123.9 billion in the three months ended December, although its revenue growth was slow.
As usual, the iPhone boosted sales for Apple, which briefly surpassed બજાર 3 trillion in market value in early January and reached nearly $ 2.6 trillion by Thursday. Total sales of iPhones were $ 71.6 billion, up 9 percent from a year earlier. Demand for the new iPhone 13 has soared, but the company has been warning for months that shortage of computer chips and epidemic-related manufacturing problems in Asia could limit supply and cut revenue.
The global chip shortage has hurt a wide range of industries, including consumer electronics and cars. On Monday, Commerce Secretary Gina M. Raymondo said the U.S. was facing a “worrying” shortage of semiconductors.
Lack of chips has forced some factories to slow down or suspend production. This has led to a slowdown in US economic growth and increased inflation in the United States.
Understand the supply chain crisis
Apple chief executive Tim Cook said in October that the supply disruption cost his company $ 6 billion in revenue during its fall quarter. During a call with investors on Thursday, he said Apple had experienced “more supply disruptions than during the September quarter” during the holidays, but declined to give an exact number.
Mr. Cook said he saw the light at the end of the tunnel for Apple: he expected supply problems in the current quarter to be less than they were during the holidays.
He said during the earnings, “We are proud to get products that customers really want, and we try to do it on a fast basis, and so it’s frustrating that we can’t always do it at the speed we want.” , ”He said during the earnings. Call “However, March is better than December, and so there are some encouraging signs.”
Mr. Cook said most of the difficulty was in getting a particular type of computer chip, but did not think Apple needed to re-evaluate how its supply chain was operated because of the conflict.
“I think our supply chain is doing really well considering the shortage, as it is a fast moving supply chain,” he said.
Apple saw worldwide sales growth, which led to a 20 percent year-over-year increase in China and a 19 percent increase in the rest of the Asia-Pacific region, although sales in Japan fell 14 percent in the same quarter a year earlier. Sales of the iPad were particularly limited due to supply chain problems, Mr. Cook said; The company reported a 14 per cent decline in tablet sales over the same period last year.
Apple announced a slate of new hardware products in the fall, including newer models of its MacBook Pro laptop computer, AirPods, iPad and Apple Watch. It is working on an augmented reality headset that can compete with offers from companies such as Meta, Facebook’s parent, as technology companies are increasingly jockeying for influence in emerging metavars, a futuristic online universe.
Mr. “We’re seeing a lot of potential in this space and are investing accordingly,” Cook said, setting aside questions about how Apple is thinking about Metavers on earnings calls.
How the supply chain crisis unfolded
The epidemic exacerbated the problem. Extremely complex and interconnected global supply chains are undergoing upheaval. Much of the crisis can be traced to the outbreak of Covid-19, which led to the economic downturn, mass layoffs and the suspension of production. Here’s what happened next:
Apple also benefited from strong growth in its services business, including its App Store. Cook has been described as an “economic miracle for developers around the world”, though he faces constant accusations that it hinders competition and imposes heavy fees on app developers. The service business grew nearly 24 percent to $ 19.5 billion in the year-ago quarter.
Apple also said it plans to use about $ 27 billion in cash to pay dividends to shareholders. Shares of Apple jumped more than 4% in after-hours trading on Thursday evening.
Apple’s positive results came close to a weekend of wild trading in the stock market amid fears over how quickly the Federal Reserve could raise interest rates in an effort to curb inflation. Higher interest rates make risky investments, such as technology stocks, less attractive, raising concerns that the incentives that technology companies receive due to the epidemic may soon expire.
But Microsoft and Tesla, despite facing their own supply chain problems, posted record profits this week and beat industry expectations. Next week, Alphabet, Google’s parent and Amazon will report their results for the last three months of 2021, providing insights into the health of online advertising and retail.