Apple today released its first-quarter results for fiscal 2022. The report shows that Apple’s iPhone revenue in the first quarter was $71.63 billion, and the market expected $67.74 billion, a year-on-year increase of 9.2%; Mac revenue was $10.85 billion, analysts expected $9.53 billion, a year-on-year increase of 25%; product revenue was $104.43 billion, analysis Analysts expected $99.30 billion.
iPad revenue was $7.25 billion, down 14% year-on-year, and analysts expected $8.11 billion; the financial report showed that Apple’s first-quarter net revenue was $123.945 billion, compared with $111.439 billion in the same period last year An increase of 11%, a record high; net profit was 34.630 billion US dollars, compared with 28.755 billion US dollars in the same period last year, an increase of 20%. Among them, the revenue of Greater China was 25.783 billion US dollars, an increase of 21% compared with 21.313 billion US dollars in the same period last year.
Following the earnings release, Apple management held a conference call with CEO Tim Cook, CFO Luca Maestri and Investor Relations (Senior) Director Tejas Gala and answered analyst questions.
The following is a transcript of the analyst Q&A session of the conference call:
Bank of America analyst Wamsi Mohan: The company has achieved good profit margins, so my question is mainly about the profit margins of the products and services business. I know that the strong product gross margins are mainly benefited from the changes in the product mix. I would like to ask from the management Judging by the numbers you see, can this change continue? How have the Pro and Pro max products in this product cycle changed from previous cycles? The gross margin performance of the service business is also very impressive. Can you please tell me which sub-businesses have been growing and contributed to this positive change? Given some of the huge investments the company has made, how will the gross margins of sub-businesses like content and streaming service Apple TV+ evolve in the future?
Tim Cook: We see a lot of market demand for the entire iPhone 13 product lineup, and the best-selling models in many markets are occupied by our products, such as the top five in the US and Australia markets, The top four in the Chinese urban market, two out of the top three in the UK market, two out of the top four in France and Germany, and four out of the top six in the Japanese market. Apple’s market share is also increasing, based on some of the data I’ve seen from outside sources, so we’re very pleased with the growth momentum of the iPhone product, and to add, we were somewhat impacted this quarter.
Luca Mastri: Regarding the gross profit margin of the service business, the service business as a whole contributes to the growth of the company’s gross profit margin. Our service business has a wide range of categories, and the profit margin level of each sub-business is different. It is related to the nature of the sub-business and to our statistical method, so the change in the gross profit margin level of the service business is related to the rapid growth of each sub-business. The company will not make separate forecasts for the product and service business, but we expect The company’s overall growth in the second quarter was 42.5%-43.5%, which is a very strong growth compared to the past, and we are very satisfied with this.