The iPhone manufacturer Apple posted its fiscal fourth-quarter (Q4) 2021 results on Thursday. It reported a revenue of USD 83.4 Billion, a significant increase of 29% year-over-year (YoY). The company’s operating expenses increased by 14% since Q4 2020. The operating expense includes investment in research & development and running administrative departments. On the other hand, Apple generated a net income of USD 20.55 Billion, up by 62% YoY.
The company’s generated USD 1.24 earnings per diluted share, a surge of 69% since the last quarter same period. Apple’s smartphone iPhone contributed to the largest revenue, followed by the services segment. Its iPhone category sales were up by 47% YoY, an optimistic segment growth. Conversely, the company’s cash flow was reduced to USD 39.78 Billion from USD 50.22 Billion in the quarter ending on September 25, 2021. Apple’s shares tanked 3% post the quarterly results.
Executives Statement on Earnings Call
Apple’s CEO Tim Cook told CBNC that “we had a very strong performance despite larger than expected supply constraints, which we estimate to be around $6 billion.” He further added that “the supply constraints were driven by the industry wide chip shortages that have been talked about a lot, and COVID-related manufacturing disruptions in Southeast Asia.” Tim Cook said the supply issues were related to chips on “legacy nodes” and old-generation chips.
Despite the supply chain disruptions, Cook said that in the next quarter, the company expects “solid year-over-year revenue growth.” This is due to the launch of the next-generation iPhone 13, Mac, wearables, and services. “This year we launched our most powerful products ever, from M1-powered Macs to an iPhone 13 lineup that is setting a new standard for performance and empowering our customers to create and connect in new ways,” Tim Cook said in a statement. Meanwhile, its service segment, which includes Apple Music, licensing, advertising, extended warranties, and video streaming service, performed better than expected.
This quarter the company failed to beat Wall Street expectations. It’s for the first time since May 2017, Apple has missed the revenue estimates. “Our record September quarter results capped off a remarkable fiscal year of strong double-digit growth, during which we set new revenue records in all of our geographic segments and product categories in spite of continued uncertainty in the macro environment,” Apple’s CFO Luca Maestri in a statement. He added that the company has returned USD 24 Billion to the shareholders this quarter. The company has announced a dividend of USD 0.22 per share and will be credited to the shareholder’s bank account on November 11, 2021.
Apple: We Doubled Our Business in India and Vietnam
The company said in the quarterly earnings call that one-third of its revenue was from the emerging markets and has 2X its business in Vietnam and India. According to market research company Counterpoint Technology, the company recorded 212% YoY in India and dominated the premium smartphone segment. Last year, Apple grew the business by 33%, reporting USD 336 Billion in revenue.
Company’s Carbon Neutral Commitment
On Wednesday, Apple announced that it has doubled its number of suppliers to accelerate its 2030 goal to go carbon neutral across its supply chain and products. The company added 10 new projects to boost the clean energy initiatives. “Every company should be a part of the fight against climate change, and together with our suppliers and local communities, we’re demonstrating all of the opportunity and equity green innovation can bring,” Tim Cook said in a statement.
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