Apple reports Q1 revenue of $123.9B, up 11% YoY, net income of $34.6B, up from $28.8B YoY, Services sales of $19.5B, up from $15.8B YoY, iPhone sales of $71.6B

Revenue up 11 percent to new all-time record — iPhone, Mac, Wearables, and Services revenue reach new all-time highs

Apple 2022-01-28

Context & Ripple Effects

Apple’s reported Services revenue has risen from $11.5B in its 2019 Q3 results to $17.4B in Q3 2021 and now $19.5B, while iPhone revenue had previously declined year over year in that earlier quarter. The current results pair record Services with record iPhone, Mac, and Wearables revenue rather than relying on a single category.

The quarter also extends Apple’s record-scale run from the prior year’s $111.4B Q1, with revenue and net income both increasing year over year. That makes the Services gain material not only as a record but as part of continued top-line growth alongside hardware.

First-order effects

Apple enters the next quarter with $123.9B in revenue and $34.6B in net income, while its iPhone, Mac, Wearables, and Services businesses all report record revenue.
Services’ $19.5B quarter gives Apple a larger revenue stream alongside the $71.6B iPhone business, continuing the category’s rise from $17.4B six months earlier.

Second-order effects

Apple’s internal product strategy gains more room to treat iPhone, Mac, Wearables, and Services as mutually reinforcing revenue lines, since each reached a record in the same quarter.
The growing Services contribution raises the importance of revenue per Apple device: additional device sales enlarge the base from which Apple can generate Services revenue.

Third-order effects

If Services continues to grow alongside record hardware sales, Apple’s earnings profile shifts further toward a model where device demand and recurring revenue reinforce one another rather than offset one another.
Apple’s quarterly reporting increasingly makes category breadth—not iPhone sales alone—the key measure of its consumer-platform scale.

The trend: Apple is building a broader device-and-services revenue engine, with record hardware categories expanding the base for Services growth.

Discussion

@benbajarin Ben Bajarin on x
Apple saying the last six quarters have been the best ever for Mac. Expect that momentum to continue 2022 and beyond, thanks in large part to Apple Silicon.
@kirkburgess Kirk Burgess on x
Apple with 43.76% gross margin $AAPL
@benbajarin Ben Bajarin on x
Apple on the march to active installed base of 2 billion devices, which should happen this year. Macs are likely over 120m active installed by now.
@shiraovide Shira Ovide on x
I just cannot explain to humans how bonkers Big Tech numbers are. One stat: The 5 biggest U.S. airlines in pre-pandemic 2019 generated a combined $12.3 billion in profit that year. Apple's profit for *3 months* was $34.6 billion
@parrysingh Parminder Singh on x
Working at Apple it was clear, Jobs was responsible for the innovation. Cook was an operations guy. After Jobs, I was sure they'll lose their mojo. 10 years on they just posted a record $123.9B qtr! I was wrong. Innovation is vital. But never underestimate an operations wizard!
@asymco Horace Dediu on x
2/3 of Apple Watch buyers are new to the product.
@epro Emil Protalinski on x
$AAPL Q1 2022: - Revenue up 11% to $123.9 billion - Profit up 20% to $34.6 billion - iPhone up 9% - Mac up 25% - iPad down 14% - Wearables/Home/Accessories sales up 13% - Services up 24%
@asymco Horace Dediu on x
Apple services margin: 72.4%
@neilcybart Neil Cybart on x
It is important to remember that Apple's 1Q22 results were supply constrained. Apple could have reported higher revenue if the supply was there. Probably was a $130B+ quarter in terms of actual customer demand (vs. the $124B reported revenue).
@reneritchie Rene Ritchie on x
More than 1.8 billion devices in Apple's active install base
@markgurman Mark Gurman on x
Breaking News: Apple made a ton of money https://www.bloomberg.com/...
@sarthakgh @sarthakgh on x
why apple made 124 billion in a quarter and you didn't [picture of password fill option from Messages]
@stevekovach Steve Kovach on x
Only miss: iPad revenues due to supply constraints. https://twitter.com/...
@thurrott Paul Thurrott on x
Apple's revenues in the previous quarter were 2.5X those of Microsoft's. These are the number one and two biggest companies in the world. But these results make them seem like #1 and #257, respectively.
@asymco Horace Dediu on x
Apple has so far generated more than $700 billion in cash. $1 Trillion is within sight. [N.B. this is not typically reflected in the share price or market cap as most of that cash ($631b) has exited the company.] https://twitter.com/...
@iansherr Ian Sherr on x
Cook notes 15th year of working with ProductRED. He says customers buying ProductRED versions of its devices have helped raised nearly $270 million
@munster_gene Gene Munster on x
Apple just saved the broader tech market.
@neilcybart Neil Cybart on x
Apple reported a 43.8% gross margin. That is very strong for Apple. - 38.4% gross margin for Products (HW). That's up from 35.1% last year. - 72.4% gross margin for Services. That may be an all-time record for Services.
@albertobernalle Alberto Bernal on x
Apple CEO Tim Cook says supply constraints are improving after issues hindered sales https://www.wsj.com/...
@rsgnl Joe Rossignol on x
Apple in Q4 2000: $195 million loss “It's not something I'm proud of,” said Steve Jobs. Apple in Q4 2021: $34.6 billion profit I think he would be pretty proud.
@munster_gene Gene Munster on x
Stepping back on the Apple quarter. We should not be surprised. When you build the best consumer tech in the world - things turn out that way.
@asymco Horace Dediu on x
Apple is one quarter away from spending half a trillion dollars on buying back shares. Lots of people seem to be willing to sell them to Apple.
@iansherr Ian Sherr on x
Despite pandemic, Cook says that Apple's retail had highest revenue in history, and also highest ever customer satisfaction (and Apple watches this data in particular very closely).
@glennf Glenn Fleishman on x
Such a bummer that the MAC IS DYING. I'm sure Apple will cancel the whole Macintosh line-up any day now. (chart via https://sixcolors.com/... ) https://twitter.com/...
@divestech Dan Ives on x
Apple's robust earnings and Cook's positive commentary about the supply chain improvements will be front and center on every tech investor's screen tomorrow. The demand story for iPhone and Services a monster quarter despite supply chain. Positive read thru for tech space
@tolmasky Francisco Tolmasky on x
Hyper focused on watches, phones, computers, tablets, a credit card, book store, the App Store, music store, original television programming and movies, speakers, video game publishing, worldwide 3D maps, personal assistants, VR, and a car. Just goes to show, focus is the key! ht…
@asymco Horace Dediu on x
Apple margins (since 2005) https://twitter.com/...
@thurrott Paul Thurrott on x
iPhone revenues in Q4: $71.6 billion. Total Microsoft revenues in Q4: $51.7 billion.
@asymco Horace Dediu on x
The Apple economy will be $1.2 Trillion this year. https://twitter.com/...
@munster_gene Gene Munster on x
Apple is having its best days.
@lanceulanoff Lance Ulanoff on x
I think Apple's doing fine. It just posted First Quarter earnings of $123.9 billion. iPhone accounted for $73B of that 👀. Mac sales grew, Services, naturally, grew by a lot to $19B. iPad sales fell year over year. https://www.apple.com/...
@bleedsixcolors @bleedsixcolors on x
Fun with $AAPL financial charts, a thread: It was once again the best Mac quarter ever. The last six quarters have been the best Mac sales quarters ever. https://twitter.com/...
@iansherr Ian Sherr on x
Cook praises Apple Watch and cites the recent ads where it helped call 9-1-1 in an emergency: “We're still in the early innings with our health work, but every day I am encouraged by our positive impact.”
@levie Aaron Levie on x
Apple just made $124 billion in a single quarter 🤯. Building great product with hyper focus pays.
@starfire2258 Sean Hollister on x
Record revenue and record profit for Apple. Last quarter, Apple averaged $4,392 — in profit — per second. https://www.theverge.com/...
@stshank Stephen Shankland on x
How Apple turns its device hardware business into a foundation for other businesses. https://twitter.com/...
@lucas_shaw Lucas Shaw on x
Apple made about as much money in the final 3 months of 2021 as Disney, Netflix and YouTube combined last year. https://www.bloomberg.com/...
@asymco Horace Dediu on x
Another Apple quarter is now in the history books. https://twitter.com/...
@munster_gene Gene Munster on x
I expect even better days will follow in the years to come. Consumer are standardizing on Apple products.
@trungtphan @trungtphan on x
Apple Wearables (AirPods, Watch etc) cleared $15B in the last quarter. That's more than Apple's full year sales in 2005 ($14B). Comical.
@divestech Dan Ives on x
Overall, with $6 billion already pushed due to the supply chain in the quarter, we would characterize this quarter as a major statement on iPhone/Services demand and Cupertino's ability to navigate a supply chain shortage in almost Teflon-like fashion. Key print for Apple/tech
@asymco Horace Dediu on x
Another 93 million Apple shares are gone forever.
@jsnell Jason Snell on x
$AAPL results are out! Here are the charts: https://sixcolors.com/...
@iansherr Ian Sherr on x
(sidenote: Services revenue was $19.5 billion. I remember when Steve Jobs joined one of the conference calls to celebrate Apple hitting $20 billion in OVERALL revenue.)
@kylebrussell Kyle Russell on x
Poor iPad :( https://t.co/ETYogc2uWx
@timkhiggins Tim Higgins on x
“We saw supply constraints across most of our products,” Tim Cook said in an interview. “We're forecasting that we will be less [constrained] in March than we were in the December quarter.” https://www.wsj.com/...
@neilcybart Neil Cybart on x
Here are Apple's granular 1Q22 results: - iPhone revenue: $71.6B (my estimate: $74.8B) - Services: $19.5B (my estimate: $19.4B) - Wearables / Home etc.: $14.7B (my estimate: $15.3B) - Mac: $10.9B (vs. my $10.4B) - iPad: $7.2B (vs. my $7.1B) iPhone a bit light to my estimate.
@levynews Ari Levy on x
Your inflation is my gross margin $AAPL https://www.cnbc.com/... https://twitter.com/...
@arjunkharpal Arjun Kharpal on x
#Apple December quarter earnings were strong despite the chip shortage. It beat estimates on all product categories except iPad. More importantly, Tim Cook signaled the supply chain constraints (chip shortage) will ease in current quarter. $AAPL shares up https://www.cnbc.com/...…
@mattrosoff Matt Rosoff on x
11% growth on that base is astounding. https://twitter.com/...
@neilcybart Neil Cybart on x
Apple just released 1Q22 earnings: $123.9 billion of revenue $2.10 earnings per share (EPS) My estimates were: $127.1 billion of revenue $2.13 EPS I had the highest estimates out there. Consensus was way back at $118B of revenue and $1.88 EPS.
@iansherr Ian Sherr on x
alrighty, earnings call starting with @tim_cook speaking. All time records for developed and emerging markets, and all categories except iPad, which was supply constrained. He says supply constrains were “higher” than when he talked about it last year.
@munster_gene Gene Munster on x
Apple reports signature upside despite all of the headwinds. Cook tells CNBC in the March quarter the supply headwind will lessen.
@trengriffin Tren Griffin on x
Apple spent “$14.4 billion through open market repurchases of 93 million Apple shares.” Every time an Apple share is repurchased, Berkshire's percentage interest grows larger (roughy 5.6% now). https://www.imore.com/...
@lamonicabuzz Paul R. La Monica on x
Apple beat on earnings and revs. $AAPL up 2% after hours so far.
@dougboneparth Douglas A. Boneparth on x
BREAKING: Apple beats earnings by selling slightly cooler versions of the same product.
@asymco Horace Dediu on x
Apple posted an all-time revenue record of $123.9 billion, up 11% year over year.
@patrickmcgee_ Patrick McGee on x
.@apple finance chief tells the @FT: Supply chain issues are being resolved: “We expect to set a March quarter revenue record and we expect to grow revenue solidly on a year over year basis.” Headwind last quarter: “more than $6bn.” Analysts feared upwards of $10bn
@brianfagioli Brian Fagioli on x
@Techmeme @PatrickMcGee_ I'm surprised subscriptions isn't a billion dollar business for Apple already.
@caro_milanesi Carolina Milanesi on x
More than 750 million paid suscriptions across services - remember when Apple had to convince the Street that there was a real opportunity in services? $AAPL
@stevesi Steven Sinofsky on x
Apple has 785M subscribers worldwide - // comparisons: Visa has ~880M credit cards, China Mobile with ~850M. What other subscriptions are in this league? https://variety.com/... via @variety
@asymco Horace Dediu on x
See the new Apple active devices number in context: [chart comparing Apple's numbers to Amazon Prime, Netflix, and Peloton subscribers]
@asymco Horace Dediu on x
Apple reports 1.8 billion active devices !!!!
@benedictevans Benedict Evans on x
Apple: 1.8bn active devices. Microsoft: 1.4bn monthly active Windows PCs. (And Google, last year, said over 3bn Androids, not including China)
@asymco Horace Dediu on x
Apple has been adding 3 million active devices every week for over a decade.
@asymco Horace Dediu on x
By June 2023 there will be 2 billion Apple devices in use. You can mark that in your calendar.

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