Apple’s revenue hits another record as it navigates supply chain issues

Apple posted record revenue of $123.9bn in the holiday quarter, an 11 per cent gain from a year ago in a sign that the company navigated supply chain constraints better than analysts had expected.

Apple’s net profit in the three-month period through December jumped 20 per cent to $34.6bn, well above forecasts for $31.1bn. Analysts had expected revenues of $119bn. Twelve months ago the group reported record revenue of $111.4bn.

Apple’s stock jumped 1.6 per cent after the release of its results on Thursday.

Finance chief Luca Maestri told the Financial Times the supply chain headwinds amounted to “more than $6bn”, the same amount as the prior quarter. At the time, Apple said the December quarter would be face greater challenges, prompting investors to anticipate a $10bn headwind.

Maestri said supply chain issues were being resolved, adding: “We expect to set a March quarter revenue record and we expect to grow revenue solidly on a year-over-year basis.”

The Cupertino-based tech giant, which briefly hit a $3tn market value milestone earlier this month, said the iPhone accounted for 58 per cent of total revenues, rising 9 per cent from a year ago to $71.6bn. Analysts had expected $67.4bn in sales.

“The top five selling smartphones in the US and Australia were all iPhones,” Maestri said. “The top four in urban China were all iPhones.”

Revenues in China climbed 21 per cent to $25.8bn, while sales in the Americas rose 11 per cent to $51.5bn and sales in Europe climbed 9 per cent to $29.7bn. Japan was the only soft spot, with sales falling 14 per cent to $7.1bn, while sales in the rest of Asia climbed 19 per cent to $9.8bn.

According to research group Counterpoint, Apple’s smartphone shipments in China were up 32 per cent from a year earlier to 50m units, taking the top spot for smartphone sales.

Services, the unit for App Store revenue, digital media purchases and more, jumped 24 per cent to $19.5bn, above forecasts for a 19 per cent gain.

“We have great momentum around paid subscriptions — we now have more than 785m paid subscriptions on our platform,” Maestri said. “That’s 165m up in the last 12 months alone.”

Wearables, a division comprising Apple Watch and AirPods, rose 13 per cent to $14.7bn. Mac sales rose 25 per cent to $10.9bn.

iPad sales were the only category to decline, as Apple prioritised getting components to the iPhone. Sales of the tablet fell 14 per cent to $7.2bn.

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