Apple Reports All-Time or March Quarter Revenue Records Across All Categories Except iPad

[MacRumors]

Apple today announced its earnings results for the second quarter of its 2022 fiscal year, including revenue of $97.3 billion, a new March quarter record. Apple saw growth across its iPhone, Mac, Wearables, and Services product categories, but iPad revenue experienced around a 2% decline compared to the year-ago quarter.

"We are very pleased with our record business results for the March quarter, as we set an all-time revenue record for Services and March quarter revenue records for iPhone, Mac, and Wearables, Home and Accessories," said Apple's CFO Luca Maestri.

Apple's CEO Tim Cook told CNBC that its iPad line continued to face "very significant supply constraints" during the March quarter.

The breakdown of Apple's earnings results for the March quarter:

• iPhone: $50.5 billion, up from $47.9 billion in the year-ago quarter
• iPad: $7.6 billion, down from $7.8 billion in the year-ago quarter
• Mac: $10.4 billion, up from $9.1 billion in the year-ago quarter
• Wearables, Home, and Accessories: $8.8 billion, up from $7.8 billion in the year-ago quarter
• Services: $19.8 billion, up from $16.9 billion in the year-ago quarter

Wearables, Home, and Accessories includes the Apple Watch, Apple TV, HomePod mini, iPod touch, AirPods, Beats headphones, accessories like iPhone cases and Apple Watch bands, and more. Services includes the App Store, Apple Music, Apple Arcade, Apple TV+, Apple Fitness+, iCloud, Apple Pay, AppleCare plans, and more.

Article Link: Apple Reports All-Time or March Quarter Revenue Records Across All Categories Except iPad

 

[dantracht]

Amazing stuff.

 

[subjonas]

“Apple's CEO Tim Cook told CNBC that its iPad line continued to face "very significant supply constraints" during the March quarter.”

Have people been unable to get iPads?

 

[turbineseaplane]

...and 90 Billion in buybacks

Gross

Buybacks need to get shut down unless they are tied to also doing compensation down the org chart.
We have to get back to some sense of stakeholder capitalism (not just shareholder capitalism)

 

[Naraxus]

Surprise surprise Tim. People want desktops and laptops for getting real work done, not toys

 

[turbineseaplane]

They are pulling in as much from Services as wearables and Macs combined

Eeks…

Gonna’ be diggin in hard on App Store safety and security FUD

 

[nutmac]

Have people been unable to get iPads?

I think the decline in sales (2 quarters in a row) is due to iPadOS. With more and more people working or learning from home, they want more versatility. iPadOS just isn't cutting it when it comes to things like (1) multitasking (windowing), (2) tepid USB-C support (e.g., audio devices, external display limitations), (3) unoptimized home screen experience, and (4) dearth of pro apps.

 

[nutmac]

They are pulling in as much from Services as wearables and Macs combined

Eeks…

That is more indicative of Services category's success (although the growth is slowing at 17% vs. 20%+ in the past 4 quarters). Both the wearable (12% growth) and Macs (15% growth) are doing well.

 

[turbineseaplane]

That is more indicative of Services category's success

A lot of that "success" is from the iOS App Store Revenue/Distribution Monopoly

 

[MLL63QNA]

To me iPad has always been like a iPhone but with bigger screen, if iPhone had a pencil support (maybe a pencil inside of iPhone) we could call iPhone iPad.

Just zero reason to buy iPad if you have a iPhone, just my two cents.

 

[B.A.T]

My use case is far from normal but I've had to order three iPads for work this year. The first one took six weeks to arrive and the two other I just ordered are going to take three weeks minimum

 

[mlody]

At peak our household had 4 iPads for the family of 4. We are now down to 1 that is used by our younger daughter who does not have a laptop yet. Like many said, generally speaking iPads are not good for productivity with exception to few niche scenarios and we agree with that.

 

[1284814]

The iPad is great for procreate

 

[Neepman]

To each their own. I love my iPad(s) more than life itself.

 

[44267547]

Services showing considerable growth again up just ove ~2.9. I’d say this category has the most potential over all the other categories for Apple expanding.

 

[Benjamin Nabulsi]

not sure what's the surprise there, they have a confusing line.
the mini was the best thing they've done.

Maybe this will push them to move to OLED..

 

[nutmac]

A lot of that "success" is from the iOS App Store Revenue/Distribution Monopoly

Since Apple isn't breaking down the Service revenue category, we just don't know. I would love for Apple to split the 3rd party services revenue number, or even spin it off as a separate company (like Claris with FileMaker).

 

[subjonas]

I think the decline in sales (2 quarters in a row) is due to iPadOS. With more and more people working or learning from home, they want more versatility. iPadOS just isn't cutting it when it comes to things like (1) multitasking (windowing), (2) tepid USB-C support (e.g., audio devices, external display limitations), (3) unoptimized home screen experience, and (4) dearth of pro apps.

I mean, I agree WFH/virtual learning is probably the big factor—people probably needed certain types of traditional computer functionality and therefore probably had to spend all their money on traditional computers. But I think it’s kind of strange to say that the iPad could have had that functionality too. You’re right, it could have and sure it probably would have improved its sales, but I wouldn’t understand the business sense of it. Since the Mac already has that functionality, I don’t know what motivation Apple (or any company) would have to fill the same functional niche twice with two different products. It’s not really efficient. I think the iPad fills a different niche than the Mac and the Mac niche just happens to be a priority for people right now. I’m sure iPad sales will pick up again.

 

[Student of Life]

Surprise surprise Tim. People want desktops and laptops for getting real work done, not toys

The numbers don't lie, people are speaking with their wallets. Just look at the iPad forum, you have for the most part almost universal displeasure with the operating system and its limitations. Even the Airs come with M1 chips that are found in MBA and iMac but no real advantage is see because of the operating system.

 

[calimed]

Why does the stock plummet after hours after news like this? Supply constraints are an issue but why isn’t there confidence in this company?

 

[Unregistered 4U]

A lot of that "success" is from the iOS App Store Revenue/Distribution Monopoly

Don’t forget their monopoly on the iPhone. And the Mac as well. AND the iPad. In fact, if you go to Apple.com and scroll to the bottom, what you’ll see there is an incomplete but extended list of EVERYthing Apple has a monopoly on.

 

[Unregistered 4U]

I think the iPad fills a different niche than the Mac and the Mac niche just happens to be a priority for people right now. I’m sure iPad sales will pick up again.

And, even in a year that’s considered bad for the iPad, there are still more users with new iPads than with new Macs quarter after quarter.

 

[DeepIn2U]

...and 90 Billion in buybacks

Gross

Buybacks need to get shut down unless they are tied to also doing compensation down the org chart.
We have to get back to some sense of stakeholder capitalism (not just shareholder capitalism)

Agreed.

Right now the ONLY reason for share buybacks is CEO/CFO/CIO compensation. it’s not strengthening the brand anyway.

But an increase of dividends and yearly increase is a welcome change!! I think I’ll be back to buying a few common stock.

 

[Macative]

I think the decline in sales (2 quarters in a row) is due to iPadOS.

It's not. It's due to the tablet form factor being very limited in potential.

 

[minik]

Have people been unable to get iPads?

At work, we ordered 20 base model iPad and that took 7 to 9 weeks to arrive. The new iPad Air also being pushed back although Q2 ended ~a week after the iPad Air on sales. Lately the base iPad shipping has been improved.