Apple continues to grow despite headwinds

Apple’s second-quarter revenue hit $97.2 billion, up 9% year-on-year.

We usually. Apple is overcoming the supply challenges that plague so many industries better than others. While many others are struggling, the Californian company manages to report a 6% increase in its quarterly profits, while its turnover increased by 9%. The January-March period is one of the best quarters in its history. Apple is again doing better than analysts’ forecasts.

In the context of delays, even interruptions in the delivery of components, which slow down and sometimes prevent the production of automobiles or computer equipment, Apple once again demonstrates its mastery. “I think we are doing a reasonably good job moving forward at the moment in a difficult environmentremarks Apple boss Tim Cook with deliberate modesty.

Total sales of $97.29 billion exceeding expectations

Apple’s legendary profitability is also verified. The Cupertino company generates a result of 25 billion dollars out of a staggering total of 97.29 billion dollars in sales which exceeds expectations. Of this total, more than 77 billion correspond to iPhones, iPads and Macs. The rest essentially covers Apple’s services, such as its music or video-on-demand sales platforms.

Apple is not immune, however, to headwinds that affect, sometimes harshly, the performance of other multinationals like Toyota or Amazon. “Almost all factoriesin the Shanghai region on which Apple depends for its production have resumed their activity, says Tim Cook. The latter nevertheless fears the effects on supply and demand for Macs, iPhones and iPads of the reconfinements in China. He estimates between 4 and 8 billion dollars the shortfall that this situation could cause.

But the management of Apple is mainly concerned about the possible impact of the economic slowdown in Europe. At the moment, Apple’s suspension of sales in Russia is not too serious. The country represents only one percent of its turnover, and a little more in terms of profits. “Our production constraints are significantly lower than in the previous quarter… but the Covid is difficult to predict“, recognizes Tim Cook.

With a 5% increase in iPhone sales, in a market that is said to be saturated, a 15% gain in Mac computer sales and a 17% jump in service sales, Apple is making jealous. The level of confidence in the company in its ability to manage the difficulties ahead is high enough for it to announce a 5% increase in its dividend and increase its share buyback program to $90 billion. the market.

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