Apple has reported quarterly revenue of $83.4 billion, an increase of 29% from a year ago, and setting a new quarter revenue record, despite larger-than-expected supply constraints. It posted a net profit of $20.6 billion, up 20.6% YoY and quarterly earnings per diluted share of $1.24 for the financial year Q4 2021 that ended September 25, 2021.
During the earnings call, CEO Tim Cook said that Apple set quarterly records in every geographic segment, with strong double-digit growth across the board. During fiscal 2021, the company earned nearly one-third of its revenue from emerging markets and doubled its business in India and Vietnam, he added.
Apple CFO Luca Maestri said that it was a record September quarter for both, products and services.
- Products revenue was $65.1 billion, up 30% over a year ago, despite supply constraints that Apple estimated at around $6 billion.
- iPhone revenue set a September quarter record of $38.9 billion, growing 47% year-over-year, despite supply constraints as customer demand was very strong. The iPhone 12 family continued to perform very well, and the customer response to the launch of our iPhone 13 family is good.
- iPad revenue was $8.3 billion, up 21% and a new September quarter revenue record, in spite of significant supply constraints as customer demand for the iPad Pro also powered by M1 was very strong
- Mac, despite supply constraints, driven by strong demand for our M1-powered MacBook Air, set an all-time revenue record of $9.2 billion, up 2.22% over last year
- $18.3 billion in revenue in the services sector, an all-time record and an increase of 26.2% year-over-year with all-time records for cloud services, music, video, advertising, AppleCare and payment services and a September quarter record for the App Store. The services sector posted record $68 billion in revenue during fiscal 2021, nearly tripling this category in six years.
- 745 million paid subscriptions across the services, grew more than 45 million sequentially, up 160 million from just a year ago and nearly 5 times the number of paid subscriptions Apple had less than five years ago
Given the continued uncertainty around the world in the near term, Apple did not provide revenue guidance for the coming quarter. However, it has issued some directional insights based on the assumption that the COVID-related impacts to its business do not worsen from what it is projecting today for the current quarter.
During the September quarter, supply constraints impacted Apple’s revenue by around $6 billion. The company estimates the impact from supply constraints will be larger during the December quarter. Despite this challenge, the company is seeing high demands for its products and expect to achieve very solid year-over-year revenue growth and to set a new revenue record during the December quarter.
Apple expects gross margin to be between 41.5% and 42.5%