Even as it grapples with continued supply constraints and consumers wary of inflation, Apple today reported the best quarter of March in its history. The company posted $97.3 billion in revenue in the second quarter, up 9 percent from the same quarter a year ago. That amounted to a profit of $25 billion, with earnings per share of $1.52.
Apple set revenue records in the March quarter for its iPhone, Mac and Wearables/Home/Accessories divisions. The various Apple services grew to a new high of 825 million subscribers. And the Mac continues to rise. “The last seven quarters for the Mac have now been the best seven quarters in Mac history,” said the Apple CEO. Tim Cook told CNBC. But the second quarter saw a slowdown in iPad sales, which were down slightly year over year. Cook attributed this to “very significant supply constraints”.
The surge in iPhone revenue comes even after Apple noted very strong iPhone demand in the second quarter of last year due to the iPhone 12 series launching slightly later than usual in the fall. New products launched by Apple during the March quarter included the Third generation iPhone SEgreen colors of the iPhone 13 and iPhone 13 Pro, the powerful mac studio desktop, and the 5K studio screen external display
In January, the company said it anticipated supply chain challenges to ease somewhat during the March quarter. But with China implementing strict lockdowns to limit the spread of COVID-19, supply chain issues could become a bigger issue in the coming months.
Apple’s Mac lineup is currently experiencing the brunt of shipping delays. New orders for the recently released Mac Studio with the M1 Ultra chip now have an estimated delivery date of late July. Many 14-inch and 16-inch MacBook Pro configurations will have customers waiting until June or later to receive orders placed today.
Apple will preview upcoming major updates to iOS, iPadOS, macOS, watchOS, and tvOS on its Worldwide Developers Conference (WWDC) in June. Except for a small group of guests who will be invited to the Apple campus, the conference will be largely virtual, as has been the case for the past two years.
Beyond new products and software, Apple continues to face challenges in its comprehensive control over the App Store and iPhone software ecosystem. EU law could force the company to allow sideloading and third-party software stores. He has also reluctantly agreed allow third-party payment methods in some countries for very select categories, such as dating apps.