4 Benefits of Apple's Earnings Call

  4 Benefits of Apple's Earnings Call Mac manufacturer executives explain what investors need to know. Apple  AAPL (NASDAQ) $144,67 -0,97 (-%0,67) reported big third-quarter earnings results in its fiscal third quarter, announcing earlier this week that iPhone revenue rose 50 % to $39,6 billion. Investors ignored the services segment's $17,5 billion in sales and progress into record territory, instead focusing on management's cautious comments on the next quarter. Still, there are four key takeaways for investors from the Mac manufacturer's conference call.

• The worsening of the chip shortage

Despite struggling to keep up with demand in 2021, the semiconductor industry has not been able to cope with the widespread famine affecting the industry. CFO Luca Maestri warned that component shortages will worsen in the fourth fiscal quarter. He said that the most affected by these shortages will be iPhone and iPad. CEO Tim Cook declined to predict how the famine situation might evolve over the year. This shortage has made it difficult to sell Macs and iPads powered by Apple's M1 chip, the processor.  

• Paid subscriptions took the company to a new milestone.

Apple has managed to add paid subscriptions to digital platforms, expanding its service business to 700 million today. Maestri said the total is "about four times the number of paid subscriptions we had just four years ago."

• Apple One is now a hit.

Launched late last year, the Apple One service pack has been very popular among consumers and allows users to respond and experience all kinds of services.

4 Benefits of Apple's Earnings Call

  The CEO said the Apple One could serve as a gateway for more services in the pipeline.  

• Chinese sales increased sharply.

After some weaknesses in China in 2019 and the effects of the pandemic in 2020, Apple's business in Greater China is showing a resurgence. Cook noted that the Chinese economy was "rebounding" from the pandemic quickly as China implemented drastic measures in its fight against the virus. Every major product category, including electronics and Macs, is currently seeing record demand and revenue in China. Apple expanded its base of Mac and iPad customers by two-thirds, driven by the fact that they were completely new users on the platform, while Cook also boosted sales, saying that an impressive 85% of Apple Watch buyers are also buying a smartwatch for the first time.  

Source: The Motley Fool

 

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