On the evening of April 28-29, Apple held its first earnings conference call of the year and reported its second-quarter earnings on the conference call. Contrary to the opinion of pundits who predict that the company’s profits will fall, Cupertino was able to jump out again, posting record profits compared to the same period last year. And the gap is as high as 9%, which is an extremely serious increase. Let’s try to figure out why Apple is able to win again.
Our record results this quarter are a testament to Apple’s relentless pursuit of innovation and our ability to create the best products and services in the world. We are pleased that our customers responded appropriately to our actions,” Apple CEO Tim Cook told investors.
How much money does Apple make?
Apple’s revenue for the second quarter of 2022 was $97.3 billion, or $1.52 per share, compared with $89.6 billion a year earlier. As a result, their total earnings were even higher than analysts had expected. On average, they estimate Apple’s revenue to be $93.9 billion, which would be cool if that prediction came true. But in Cupertino, we go further.
Apple’s main revenue item remains smartphone sales. However, if a year ago they brought in 53.5% of the company’s total revenue, their share has now dropped to 52%. But services rose from 18.9% to 20%, Macs rose from 10.2% to 11%, and portable electronics and devices in many households rose from 8.7% to 9%. They compensated for Apple’s falling demand for iPhones, which people mediocrely used for longer periods of time.
Apple smartphone sales
While many users update to new iPhones less frequently, there has been a significant increase in the number of people switching from Android to iOS. Basically, defectors choose the iPhone 13 because it offers a low entry point, while still offering all the flagship features, many of which are missing from competing smartphones, Tim Cook points out.
It’s unclear how many Apple devices Apple has sold. At one point, the company decided not to release this information, calling it sensitive. The reason for this is clearly a decline in quantitative sales, which we can see in the decline in the overall share of smartphones in Apple’s revenue. Nonetheless, users are starting to buy more other goods and services, so there is no reason to stop.
Apple deserves it
The big increase in Mac share can be attributed to Apple’s hardware refreshes to the product line. The company has switched from using Intel processors to its own, already switching more than half of its computers to them. Service also lags behind. Cupertino is actively developing them and populating them with new content. Apple Music, Apple TV+, and even Apple Arcade are regularly updated, resulting in steady viewership growth.
The total number of subscribers across all Apple services today is 825 million. This is an completely record in the history of Apple. This is a 25% increase from a year ago. It turns out that Apple’s branded services do attract new users who prefer the company’s developments over rival products. Cupertino didn’t specify where the biggest growth will be, but Apple Music and Apple TV+ are most likely to be the top performers.
What is the price of Apple stock?
Apple’s most important market is of course the US, with a 42% share. The second is Europe with 24%, and the third is China, which continues to generate 19% of the company’s sales. Traditionally, Russia is not on this list. But according to some reports, our market is moving Apple from 1% to 2%. Globally, that’s certainly not a lot. But the Russian market is one of the most dynamic, growing by 40% annually so far.
Apple stock reacted positively to the second-quarter financial report. As a result, the value of the company’s stock rose 4.5% to $163.64 at the close. That’s a good indicator, considering Cupertino just showed us the numbers. However, they inspired the confidence of investors who started buying shares of the company more aggressively, increasing the value of the shares and thus raising Apple’s capitalization level.