Big tech firm and iPhone maker Apple Inc (NASDAQ: AAPL) announced its financial results for its Q3 FY2022. It posted a new revenue record for the quarter ended 30 June.
The iPhone maker’s revenue rose 2% to US$83 billion as compared with average analysts’ estimates of US$82.8 billion.
Earnings amounted to US$1.20 a share, also beating projections of US$1.16 a share.
The fiscal third quarter is typically one of Apple’s slower sales periods but even then, the iPhone generated US$40.7 billion in sales during the quarter.
Last quarter also saw another positive development as digital services such as iCloud, AppleCare, Apple TV+ and Apple Music climbed 12% to US$19.6 billion.
It represents the fastest-growing category for Apple.
Supply chain constraints hurt its Mac division
Meanwhile, Apple only generated US$7.38 billion from its Mac division, badly trailing behind predictions of US$8.45 billion.
This was mainly due to the supply chain constraints that have pushed back the launching of its new MacBook Pro and MacBook Air models to July.
The delay has caused some of the customers to put off their purchases of the old versions of the products and hurt Apple’s two most popular Macs.
Accelerated growth expected in the Q4 FY2022
Another positive development is Apple’s optimism that the company will see accelerated growth in the Q4 FY2022.
Its services business, however, could take a back seat amid a slump in digital advertising.
During the earnings call, Apple’s CEO, Tim Cook, mentioned that he remained upbeat on Apple’s other products that have seen declines in sales due to supply chain constraints.
This was mainly due to the encouraging demand from consumers.
Analysts remain bullish on Apple
The positive results helped to keep bullish calls among analysts.
According to analysts polled by Wall Street Journal, there are 32 buy or overweight calls for Apple, 9 hold and only 2 sell calls.
It is not a surprise given another record quarter by the company.
Apple’s CFO, Luca Maestri, said:
“Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category.
“During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans.”
Disclaimer: ProsperUs Investment Coach Billy Toh doesn’t own shares of any companies mentioned.
