Apple reports record revenue despite global chip shortage

Apple on Thursday reported record revenue for its most recent quarter, thanks largely to strong sales of the new iPhone 13.

Despite ongoing challenges caused by the global chip shortage, the tech giant reported earnings of $123.9 billion for the three-month period ending December 25, 2021 — a significant increase over the $111.4 billion it recorded for the same quarter a year earlier.

Profit came in at $34.6 billion, marking a $6 billion increase on a year earlier and the first time for its earnings to top $30 billion.

The iPhone 13, together with other available models such as the SE, pulled in $71.6 billion for the company — up from $65.6 billion for the same period a year earlier.

Mac computers, with their new Apple-made M1 chips, also performed well, generating $10.9 billion in revenue — up from $8.7 billion. Its wearables, home, and accessories unit also saw a revenue increase, from $12.9 billion to $14.7 billion.

The only product that saw a yearly fall was the iPad, which generated $7.3 billion — down from $8.4 billion.

“We are gratified to see the response from customers around the world at a time when staying connected has never been more important,” Apple chief Tim Cook said in a comment acknowledging the ongoing pandemic.

In an earnings call shortly after the results were posted, Cook said he expects supply constraints to ease during the current quarter, adding that Apple’s supply chain “actually does very good considering the shortages.”

In the same call, Apple chief financial officer Luca Maestri said the latest results were “an all time record quarter for both products and services,” adding that the bumper quarter had been achieved “despite significant supply constraints” linked to the global chip shortage.

Maestri said that while Apple expects to achieve “solid” year-over-year revenue growth and set a March quarter revenue record, he expects income to be lower than the latest quarter due to slightly different release dates for recent iPhones and fluctuating exchange rates.

Apple’s record-breaking revenue was partly propelled by healthy sales in China, where market analyst firm Counterpoint Research said the iPhone had recently become the number one handset for the first time in six years, taking a 23% share of the market, with yearly growth hitting 32%.

For more on the iPhone 13 at the center of Apple’s record-breaking quarter, check out Digital Trends’ handy guide.

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