0 Thursday, January 27, after the U.S. stock , it became the first technology giant in the United States with a market value of over US$3 trillion three weeks ago, and released its financial report for the first quarter of fiscal year 2022 (i.e. the fourth quarter of natural year 2021). The 10-December of the year is the important holiday shopping season at the end of the year, and you will get a glimpse of the sales of the latest flagship products.
Apple rose more than 2% on Thursday and turned to a decline. It fell to two-month lows on nine days, reaching a new low of $159, and it has fallen by 10.3% this year, but it has performed relatively well among technology giants. During the same period, the Nasdaq 100 fell by 14%. Apple has fallen nearly 13% from the intraday high of $182.94 on January 3, entering the technical correction range. It had accumulated a 35% increase last year, outperforming the performance of S&P .
financial report shows that Apple's quarterly revenue and profit were both better than expected, setting a record high in the company's history. In the first full quarter of iPhone 13 sales, mobile phone revenue was better than expected, and together with Mac computers, wearable devices and services, CEO Cook also confirmed that supply chain bottlenecks are improving, and after the market share price stopped falling and rose 5%, driving Nasdaq 100 futures , QQQ and suppliers to rise.
As of last Friday's data, before the release of the financial report, 22 of the 227 analysts on Wall Street html rated "buy", 4 people rated "hold", and only 1 person suggested "sell", with an average target price of $179.80, which means there is still room for improvement of more than 9%. Among them, , Morgan Stanley, , Deutsche Bank, and Piper Sandler all raised their target price to US$200, and Evercore ISI holds the highest target price of Wall Street at US$210.
Apple frequently released new hardware devices and service options last year. In September, the traditional autumn press conference launched the new generation of 5G smartphone iPhone 13 series, the new version of Apple watch and iPad tablet . In October, it launched the MacBook Pro high-end laptop and the next generation of AirPods wireless headphones equipped with a more powerful self-developed chip. The sales of new products will be shown in this financial report.
The revenue of the shopping season at the end of the important year increased by 11% year-on-year exceeded expectations, withstand the deteriorating supply chain pressure, and the profit was also a new high
In the quarter ended December 25 last year, Apple's revenue was US$123.95 billion, an increase of 11% year-on-year, higher than the market expectations of US$119.05 billion or nearly 7%, and set the company's highest quarterly revenue in history. The last record happened to be US$111.4 billion a year ago.
adjusted EPS was $2.10 per share, higher than the expected $1.90, up 25% year-on-year, and net profit was $34.63 billion, up 20% year-on-year, both hitting record highs in the company. So far, Apple's profits outperformed market expectations in 21 quarters (i.e., five years).
However, the year-on-year growth rate of revenue and profit slowed down compared with other quarters last year. In the first quarter of fiscal year 2021, that is, a year ago, revenue increased by 21.4% year-on-year, and EPS was $1.68 per share, which was 35% year-on-year.
2021 During the epidemic in 2021, Apple products were driven by the craze of remote office/home learning and entertainment, which will put pressure on the year-on-year financial reports in the coming quarters. For example, revenue in the second quarter of fiscal year 2021 increased by 53.6% year-on-year, 36.4% year-on-year, and 28.8% year-on-year in the fourth quarter of fiscal year 2021, while in the first quarter of fiscal year 2020, that is, before the outbreak of the epidemic, it increased by nearly 9% year-on-year.
Mac sales grew the strongest in hardware, with the highest profit service revenue in the four quarters highs, and no guidance provided in eight quarters
By product classification:
The first quarter iPhone revenue was US$71.63 billion, higher than the expected US$67.74 billion, a year-on-year increase of 9% and a new high, accounting for nearly 58% of total revenue, slightly higher than Wall Street's expectations.
Mac revenue was US$10.85 billion, higher than expected US$9.53 billion, up 25% year-on-year and hit a new high, with the strongest growth in hardware.
iPad revenue was US$7.25 billion, lower than expected US$8.18 billion, down 14% year-on-year. However, this decline was warned by the company's management in the third quarter report, which was related to the chip shortage, and also related to the fact that it had a 41% year-on-year increase a year ago, which led to more difficult contrast in the same direction.
wearable devices, home and accessories revenue was US$14.7 billion, higher than expected US$14.16 billion, an increase of 13% year-on-year and hit a new high.
is another growth engine in addition to hardware, Apple's highest profit margin department service revenue was US$19.52 billion, higher than expected US$18.64 billion, a year-on-year increase of 24%, setting a new high for four consecutive quarters, but the growth rate was weaker than 25.6% in the previous quarter.
service revenue increased sharply in double-digits, driving the company's overall gross profit margin for the quarter to be 43.8%, higher than expected 41.7%.
Apple has not provided financial report guidance for eight consecutive quarters, and has not provided it since the outbreak of the European and American epidemic in March 2020, because the future is full of uncertainty.
analysis said that this is another strong performance of Apple's most important holiday shopping season at the end of the year. Except for the iPad, each product line grew over the same period last year and exceeded analyst expectations. However, iPhone sales growth rate was 9% lower than Apple's overall revenue growth.
CEO Cook told financial media CNBC that iPhone sales have withstood the drag of supply chain restrictions and admitted that "our biggest problem is chip supply", but said that it is mainly that the supply of lower-end chips is challenging, rather than the powerful core processors in flagship phones. He also said that " inflation pressure is unquestionable."
In this financial report, Wall Street mainly seeks how supply chain restrictions and chip shortages will drag down Apple's growth. Cook said that the supply problem in the fourth quarter of last year during the financial report period was worse than the previous quarter, but it is expected that the current January-March quarter will improve, and the supply restrictions will be lower than the quarter during the financial report period. The company expects revenue in the January-March quarter to continue to grow steadily year-on-year.
Sales in Greater China increased significantly year-on-year 20% continue to be eye-catching. The call said that it is exploring the new technology of the meta-universe
All major geographical market segments failed to collective double-digit percentages rose sharply, with sales in Greater China only the best jumping 21%, and the growth rate of each region was lower than the first three quarters of last year:
Apple's sales revenue in Greater China in the quarter was US$25.783 billion, a year-on-year increase of nearly 21% or more than US$4.4 billion. It was US$21.31 billion a year ago, and it also increased by 20% year-on-year. However, the first three quarters of 2021 natural year-on-year increased by 87%, 58% and 56% respectively.
Wall Street News once mentioned that Counterpoint data showed that in the fourth quarter of last year, Apple became the largest smartphone supplier in China, with a market share of 23%. This is the first time that Apple's market share in China has returned to the top of the list after six years (since 2015).
American market revenue increased by more than 11% year-on-year to US$51.496 billion, weaker than the "worst" increase of 20% year-on-year in the first three quarters of 2021.
's revenue in Europe increased by nearly 9% year-on-year to US$29.75 billion, and increased by 56%, 34% and 23% respectively in the first three quarters of 2021.
's revenue in Japan fell 14% year-on-year to US$7.107 billion, and increased by 49%, 30% and 19% respectively in the first three quarters of 2021.
's Asia-Pacific market revenue outside China and Japan increased by 19% year-on-year to US$9.8 billion, and it was nearly doubled in the first quarter of 2021. Luca Maestri, chief financial officer of
, said that the combination of the latest products and services is favorable, driving double-digit percentage growth in overall revenue and profits, and the base for active equipment installations rose to a record high of 1.8 billion units. With the goal of achieving net cash neutrality, nearly $27 billion was returned to shareholders in the quarter, and the board has announced a cash dividend of $0.22 per share in common stock.
also revealed at the company's financial report call:
Given the current global supply chain crisis , Apple has performed well in supply chain. The tight supply of
iPad is "especially long".
iPhone revenue hit record highs in both developed and emerging markets.
The market demand for the company's new M1 Pro MacBook Pro has boosted Mac sales. Most Macs sell from the latest models equipped with self-developed chips.
1/3 of the smartwatch Apple Watch buyers in the season are the first time they buy it. Cook specifically mentioned the health features associated with the new watch, saying that these businesses are still in their early stages.
Cloud, music, video, payment and advertising services all hit record highs.
has 785 million paid subscribers across platforms.
Apple sees a lot of potential in the AR (virtual reality) field. When asked about meta-universe , Cook said: New technologies are being explored.
Financial Blog Zerohedge believes that the darling iPad sales during the epidemic were inferior to expectations and fell by double digits year-on-year, which may be a good thing. The decline in demand shows that the world is gradually emerging from the new crown epidemic.
Wall Street is most concerned about the revenue losses caused by the supply chain, and looks forward to entering electric vehicles and the good news for the meta universe
analysis said that when the Federal Reserve hawks turned to technology stocks with high valuation tremors at the beginning of the year, Apple's financial report took on the heavy responsibility of reversing the decline in technology stocks. The market is highly concerned about the revenue losses caused by supply chain bottlenecks and chip shortages to Apple. Last quarter, management warned that the revenue losses may be at least $6 billion, and the impact of supply restrictions was relatively greater at the end of last year, and iPad sales may therefore fall year-on-year.
Although the "working from home/learning" trend under the epidemic has significantly boosted the demand for Apple's mobile hardware equipment, the global supply chain crisis triggered by the epidemic has also limited Apple's ability to achieve larger financial growth. Wall Street expects that the company's financial reports in the next few quarters will face the same-way comparative pressure brought by chip and components shortages, logistics delays and positive financial reports in the same period last year.
investment bank Raymond James said that Apple's supply chain restrictions involve camera modules and power components made by Texas Instruments , and iPad tablets may be limited because the iPhone, which accounts for half of the revenue, will be retained for the iPhone. Supply chain consulting firm Blume Global said that logistics delays and chip shortages have shown no signs of improvement in recent months. Apple also needs to compete with PC giants such as Dell and HP , as well as cloud computing leaders such as Microsoft , Amazon and Google for chip supply. The market is concerned about Apple's ability to control the supply chain.
It is worth noting that the stock price plummeted by more than 11% the next day after the market was released yesterday, with a record high in revenue and profits in the fourth quarter of last year. This will cause market concerns that the supply chain will drag down Apple's recent revenue, and also highlight the importance of service business, which accounts for 30% of the total revenue.
D.A. Davidson analyst Tom Forte believes that Apple's stock price will be driven by three potential catalysts in the next 12 months - iPhone sales related to 5G continue to be strong; strong growth in new product categories, especially Apple watches and video subscriptions Apple TV+; and significant capital return potential such as accelerating stock buybacks and issuing higher dividends when achieving the goal of net cash neutrality. Katy Huberty, an analyst at Morgan Stanley who gave an "overweight" rating, also said that stable revenue, upcoming new products and expansion in new markets have made Apple more defensive in an environment of rising interest rates:
"Apple has the world's highest market value technology platform, more than 1.65 billion active devices, and the strongest portfolio of products and services in many years. Multiple benefits within a year include: 5G The continued popularity of smartphones, the sales of new versions of Mac equipped with self-developed chips drive increased share in the PC market, the monetization level of high-margin service business, and strong cash returns. The company's long-term investment in augmented reality , payments, health, automobiles and smart homes will help maintain growth. "
In terms of future business, Wall Street is most concerned about Apple's expansion in new markets such as electric vehicles and metaverse hardware. Brokerage Wedbush analyst Dan Ives said the Metaverse is expected to increase its value by $20 per share. There are rumors that Apple will launch AR glasses this year, and its investment in consumer hardware gives it a strong advantage over its competitors. 5G iPhone SE and new iPad will also be released this spring.
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