Apple Q2 revenue: $50.57B from iPhone, up 5.5% YoY, $10.44B from Mac, up 14.7% YoY, $7.65B from iPad, down 1.9% YoY, and $8.8B from other products, up 12.4% YoY
- Apple's revenue grew nearly 9% year over year during the quarter ended in March. — But shares fell nearly 4% …
CNBCKif Leswing
Context & Ripple Effects
Apple entered the quarter after a Q1 in which Mac sales had climbed 25% while iPad revenue fell 14%, already separating the performance of its personal-computing lines. The new results extend that split: Mac and other products are growing while iPad remains the exception, with iPhone still supplying the largest disclosed hardware revenue stream.
Later earnings coverage continued to show uneven category growth, including a sharper iPad decline in Apple’s Q4. That makes the market’s negative share reaction more meaningful than the companywide revenue increase alone: investors are assessing the durability and mix of hardware demand.
First-order effects
Apple’s nearly 9% total revenue growth is being carried by iPhone, Mac, and other products, while the iPad business contracts again.
Apple shareholders marked the results down nearly 4%, signaling that category-level performance and the outlook implied by it outweighed the headline growth rate.
Second-order effects
Apple’s management and investors will face greater scrutiny over whether Mac and other-product growth can offset recurring iPad weakness, rather than treating hardware as a single growth pool.
The contrast between iPhone growth and iPad contraction raises the importance of product mix in Apple’s earnings narrative; later Q2 results with a steep Mac decline show that the supporting categories can change quickly.
Third-order effects
If category growth remains uneven, Apple’s hardware portfolio will be valued less on aggregate sales growth and more on whether its largest lines can sustain growth as smaller device categories fluctuate.
The results fit a longer shift toward measuring the economic contribution of each installed-device category, rather than assuming all Apple hardware lines move together.
The trend: Apple’s earnings mix is becoming more important than total hardware growth as iPhone, Mac, iPad, and accessories follow different demand cycles.
Very good Mac quarter. Second highest total Mac sales of all time (down from last sequential quarter) and an impressive 15% increase on year-over-year sales. https://twitter.com/...
EARNINGS: Apple Q2 EPS $1.52 vs. $1.43 Est.; Q2 Revs. $97.28B vs. $93.89B Est. • $AAPL authorizes new $90 billion share buyback, hikes dividend 5%. @stevekovach has the details. https://www.cnbc.com/... https://twitter.com/...
Apple's Q2 earnings are impressive, given the economic conditions! $AAPL Revenue: $97.28B vs. $93.89B estimated iPhone sales: $50.57B vs. $47.88B estimated EPS $1.52 vs. $1.43 estimated
iPad quarter sort of a push? Down only slightly from year-ago quarter, and a lot less than the holiday quarter was down. iPad business seems to be settling in. Pretty good considering fears that iPad sales might drop a lot after sales driven by the pandemic. https://twitter.com/.…
Services revenue growth decelerated for the third straight quarter, but... geez. It's still up 17% year over year. Just keeps going up. https://twitter.com/...
Apple went into this no-guidance conference call (officially - but terrible guidance commentary) with a 27.2 PE, $2.7T market cap. Earnings will now be declining year-over-year - meaning this already unjustifiable P/E would rise (if the stock doesn't drop).
Analyst to Tim Cook: Should Apple begin holding more product supply to avoid these disruptions? Cook: In this business, you don't want to hold a ton of inventory. You want to work on cycle times.
One observation from this Apple call: Tim Cook and Luca are very humble. They aren't afraid to say they don't know something. They aren't sugarcoating difficulties. And yet, they don't dwell on items that Apple is using to beat some of their competitors to a pulp.
“The $97 billion quarter ranks as Apple's third-best in history by total revenue, but one of its slowest for growth since the pandemic began more than two years ago.” https://www.wsj.com/...
Apple's year-over-year revenue in 3Q22 will be impacted by a number of factors: 1) Shortages and COVID issues will hit supply ($4B to $8B). 2) COVID lockdowns in China is impacting demand. 3) No sales in Russia. All-in-all, Apple's tone was on the negative side.
Bottom line with the $AAPL quarter. Bad news is the supply challenge is getting worse. Good news, demand is strong and consumers will wait to get Apple products. June quarters loss is September quarters gain.
Apple: Our 2Q22 results were not impacted by COVID lockdown issues in China. Instead, results were impacted by ongoing supply issues. For 3Q22, COVID disruptions *will* impact supply as it takes a while to ramp factories back up. Said another way, Apple's 2Q22 & 3Q22 are messy.
$4-$8 billion...get used to those numbers. those are the numbers that are going to have everyone trading Apple not owning it because of supply disruptions. Not demand, supply!!!
iPhone sales up 5% year-over-year to a March quarter record. Wall Street seems to have been very concerned that demand for iPhone was going to stall, but that hasn't really happened. At $50B this quarter, still an amazing sales engine for $AAPL. https://twitter.com/...