Apple’s revenue grew 9% in the second financial quarter of 2022, which ended March 26, but investors are worried. The macroeconomic environment is deteriorating, affecting the demand for devices. Apple’s shares fell by 4% after the company reported supply problems related to Covid-19. That could hit sales of $4 billion to $8 billion, as it is reported by CNBC.
The tech giant has also warned that restrictions on code are undermining demand in China. Apple CEO Tim Cook added that the company is “not insured” against supply chain problems.
Apple’s key indicators for the second quarter rose to earnings per share of $1.52 versus $1.43, revenue rose to $97.28 billion versus $93.89 billion and gross profit was 43.7% versus 43.1%. The company did not make a forecast for the current quarter.
In addition, Apple remains a public company that spends large amounts on the purchase of its own shares. This time, the board of directors allowed a $90 billion buyback.
Sales of almost all Apple products rose during the quarter. Sales of smartphones increased by 5% – this speaks in favor of the fact that the line of iPhone 13 is popular. The company also noted that this time the number of customers who previously had a smartphone on Android and for the first time switched to a model from Apple.
The popularity of Macs is also growing rapidly after Apple switched to its M1 processors instead of Intel. Sales increased by almost 15% compared to last year.
In the case of the Apple iPad alone, sales fell by 2.1%. Tim Cook explained that the iPad business had “very significant supply constraints” during the quarter.
In general, the company’s financial results exceeded expectations. Sales increased the most in both Americas – by 20%. Sales also increased in Taiwan and China, including Hong Kong.