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Apple’s Holiday iPhone Sales Soar Despite Supply Shortages | WGN Radio 720

San Ramon, CA (AP) — Apple has eliminated supply shortages that reduced production of iPhones and other popular devices, making it the most profitable holiday season to date.

The results posted on Thursday for the last three months of 2021 help explain why Apple looks even stronger at the end of the pandemic than it did when the crisis began two years ago.

At that point, Apple’s iPhone sales were sluggish as consumers began to carry older devices for extended periods of time. But now, companies in Cupertino, Calif., Seem to be unable to keep up with the steadily rising demand for devices that are becoming even more important in the era of fast-growing remote work.

“The iPhone is more popular than ever,” Apple CEO Tim Cook shouted in a conference call with analysts. The company’s Mac computers and, to a lesser extent, iPads continue to grow exponentially. With the iPhone at the forefront, Apple has revealed that more than 1.8 billion devices are currently in use worldwide.

Apple’s inability to fully satisfy its greedy desire for the iPhone is due to a shortage of computer chips due to pandemics that are affecting the production of everything from cars to medical devices.

But Apple has so far overcome the shortfall “in a nearly Teflon-like way,” Wedbush Securities analyst Daniel Ives said in a research note Thursday. With its clever management, Apple was able to report iPhone sales of $ 71.63 billion between October and December. This is a 9% increase over the same period last year.

If Apple could have all the chips and other components needed to make an iPhone, these sales growth would have been even stronger. This issue plagued Apple’s July-September quarter when management estimated iPhone sales to fall by about $ 6 billion due to supply shortages. Cook said supply shortages had a further impact on sales in the last quarter, without quantifying the amount.

These constraints hit the iPad the most, with iPad sales down 14% year-over-year. Management predicted that supply issues would not have a dramatic impact on sales this quarter, which ends in March.

Despite the resistance caused by the shortage, Apple still earned $ 34.63 billion, or $ 2.10 per share, up 20 from the year-ago quarter. Revenue was $ 123,950 million, up 11% year-on-year.

For the first time earlier this month, Apple’s continued success has helped boost its market value to over $ 3 trillion. However, stock prices have fallen 13% since their peak, amid concerns about expected rises in interest rates aimed at slowing the volatile pace of inflation, partly supported by supply shortages.

After Apple’s first-quarter figures were released, Thursday’s extended deal saw its share price rise by more than 5%.

The imminent supply problem for Apple devices is growing the importance of the company’s service division, which is backed by digital transactions on iPhone apps, music subscriptions, video streaming, and fees from repair plans.

Up to 30% of commissions collected from apps distributed by Apple through its exclusive app store were the focus of the fierce court battle that took place during the high stakes trial year. Corporate barriers that prevent consumers from using alternative payment systems.

But so far, the service sector is still booming. Revenues reached $ 19.52 billion in the last quarter, an increase of 24%.

It is widely believed that Apple is moving towards another potentially huge money-making opportunity with the introduction of augmented reality headsets that project digital images and information while users interact with other objects and people. increase. True to its secret form, the company has never said it is working on that kind of technology.

However, Cook publicly shared his enthusiasm for the possibilities of augmented reality in past public presentations and repeated that point at Thursday’s conference call.

“We see a lot of potential in the field and we are investing accordingly,” he said in response to a question.

Some analysts believe that the long-rumored headset could only be rolled out later this year, as long as it’s not delayed by supply shortages.

Apple’s Holiday iPhone Sales Soar Despite Supply Shortages | WGN Radio 720

Source link Apple’s Holiday iPhone Sales Soar Despite Supply Shortages | WGN Radio 720

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