Apple Achieves Record Quarterly Revenue... "Supply Chain Is Improving" (Comprehensive)

On June 24 last year, Tim Cook, CEO, is talking with visitors at the Apple store located on Broadway in downtown Los Angeles, California, USA. (Photo by Reuters)

[Asia Economy Reporter Yujin Cho] Despite the semiconductor supply shortage caused by COVID-19, Apple posted its highest quarterly earnings ever.

Apple announced on the 27th (local time) that its Q4 revenue last year increased by 11% year-on-year to $123.9 billion (approximately 149.11 trillion KRW).

This is the highest quarterly revenue ever recorded, surpassing market expectations ($118.66 billion).

Earnings per share also rose 25% year-on-year to $2.10, exceeding market expectations ($1.89).

All product sales except for iPad exceeded market expectations with strong performance.

Sales of the flagship iPhone reached $71.63 billion, up 9% year-on-year, and Mac sales surged 25% year-on-year to $10.85 billion.

Sales of other products, including Apple Watch and AirPods, increased 13% to $14.7 billion, while the services segment, which includes subscriptions such as the App Store, Apple Music, and Apple TV Plus, grew 24% to $19.5 billion.

On the other hand, iPad sales declined 14% to $7.25 billion, falling short of market expectations ($8.18 billion).

Apple’s strong performance was driven by increased sales in China. In Q4 last year, Apple ranked first in the smartphone market in China for the first time in six years.

According to a Counterpoint Research report, Apple’s market share in the Chinese smartphone market in Q4 last year was 23%, surpassing Vivo (19%) and Oppo (17%) to take the top spot.

This is Apple’s first time ranking first on a quarterly basis since 2015, and the 23% market share is the highest ever recorded in the Chinese market.

Although total smartphone sales in China in Q4 last year decreased by 9% year-on-year, Apple iPhone sales increased by 32% due to the popularity of the new iPhone 13.

Apple CEO Tim Cook stated that the semiconductor supply shortage is improving.

CEO Cook said, "The semiconductor supply shortage was worse in Q4 last year than in Q3," but added, "It seems that the semiconductor supply shortage will improve in Q1 this year compared to Q4 last year."

He also said, "Revenue growth in Q1 this year will be solid compared to the previous year."