Despite dealing with ongoing supply constraints and consumers wary of inflation, Apple today reported the best March quarter in its history. The company had second-quarter revenue of $97.3 billion, up 9 percent from the same quarter a year ago. That amounted to earnings of $25 billion, with earnings per share of $1.52.
Apple set sales records in March for its iPhone, Mac and Wearables/Home/Accessories divisions. The different services of Apple grew to a new record of 825 million subscribers† And the Mac continues to rise. “The last seven Mac quarters are now the best seven quarters in Mac history,” Apple CEO Tim Cook told CNBC. But the second quarter saw a slowdown in iPad sales, which declined slightly year over year. Cook attributed this to “very significant supply constraints”.
The increase in iPhone revenue comes even after Apple noted that there was very strong iPhone demand in the second quarter of a year ago as the iPhone 12 series launched a little later in the fall than usual. New products released by Apple in the March quarter included the third-generation iPhone SE, the greens of the iPhone 13 and iPhone 13 Pro, the powerful Mac Studio desktop, and the 5K Studio Display external monitor.
In January, the company said it expected supply chain challenges to ease somewhat in the March quarter. But with China implementing strict lockdowns to contain the spread of COVID-19, supply chain problems could become a bigger problem in the coming months.
Apple’s Mac range is currently the most affected by shipping delays. New orders from the recently launched Mac Studio with the M1 Ultra chip now have an estimated delivery date of late July. Many 14- and 16-inch MacBook Pro configurations will see customers waiting until June or later to receive orders placed today.
Apple will preview the next major updates for iOS, iPadOS, macOS, watchOS, and tvOS at its Worldwide Developers Conference (WWDC) in June. Except for a small group of guests invited to Apple’s campus, the conference will be largely virtual—as has been the case for the past two years.
In addition to new products and software, Apple continues to face challenges to its extensive control over the App Store and iPhone software ecosystem. EU law could force the company to allow sideloading and third-party software stores. It has also reluctantly agreed to allow third-party payment methods in some countries for highly selected categories, such as dating apps.