Apple Q2 Revenue Is Up By 9% But The Company Has Predicted A Problem
Apple has released its financial results for Q2 2022. The company has reported a revenue of $97.3 billion in the quarter that ended this March. The overall revenue is up by 9% and is a new record for the March quarter.
Apple has managed to do well in both products and services business. In fact, services revenue has reached an all-time high. The overall profit stood at $25 billion, equivalent to $1.52 quarterly earnings per diluted share. Apple has also reported that the company has $28 billion in operational cash flow. The company has returned $27 billion to its shareholders within the last quarter.
Apple Q2 2022 Revenue
Earlier, Apple used to report unit sales of its products, but now the company releases reports of a complete product category. Below is the breakdown of how much revenue each product category has generated in the last quarter.
- iPhone: $50.57 billion (Up 5.5% YoY)
- Services: $19.82 billion (Up 17.2% YoY)
- Mac: $10.43 billion (Up 14.3% YoY)
- Wearables: $8.82 billion (Up 12.2% YoY)
- iPad: $7.65 billion (Down 2.2% YoY)
In the above revenue breakdown, Apple has grown its revenues in all product categories except the iPad. Analysts had also predicted a slow quarter in terms of iPad sales. Schools re-opening is slowing down iPad sales.
Apple has also announced a cash dividend of $0.23 per share. It is an increase of 5% in comparison to the previous quarter. The dividend is payable on 12 May. Those who will hold the share of Apple Inc until 9 May will get the dividend. The company will also put $90 billion into the share repurchase program.
Last quarter was the best March quarter ever for Apple, but the company is predicting problems in the current quarter. As per Apple CFO Luca Maestri, the company faces challenges in this ongoing quarter. The challenges are related to the supply constraints but are not limited to them.
China is witnessing a surge in COVID-19 cases in the Shenzhen area, and the city is under lockdown. It is leading to supply issues for Apple and other tech companies. The company has also suspended the sale of its products in Russia, and it will indeed affect the revenues. All these challenges could hurt sales anywhere between $4-8 billion.
So other than the iPad growth slowing down, Apple’s Q2 2022 revenue has been relatively good. However, future concerns are looming but Apple won’t be the only one hit by those if it comes to that.
