Apple Inc. Quarterly Report for Q1 Ended Dec 25, 2021

Summary

Apple Inc. reported strong financial results for the first quarter of fiscal year 2022, ended December 25, 2021. Total net sales surged by 11% year-over-year to $123.9 billion, driven by robust performance in iPhone, Services, and Mac categories. Net income also saw a significant increase, reaching $34.6 billion, up from $28.8 billion in the prior year's comparable quarter, with diluted earnings per share rising to $2.10. The company demonstrated healthy operational execution despite ongoing global supply chain challenges and the lingering effects of the COVID-19 pandemic. Gross margin improved significantly to 43.8% from 39.8% in the prior year, reflecting a favorable product mix and currency tailwinds. Apple continued its aggressive capital return program, repurchasing $20.4 billion of its common stock and paying $3.7 billion in dividends during the quarter, underscoring its commitment to shareholder value.

Key Highlights

• 1Total net sales increased by 11% to $123.9 billion for the quarter ended December 25, 2021.
• 2Net income rose by approximately 20% to $34.6 billion, resulting in diluted EPS of $2.10.
• 3iPhone sales grew 9% to $71.6 billion, and Services revenue saw a significant 24% increase to $19.5 billion.
• 4Mac sales experienced strong growth of 25% to $10.9 billion, while iPad sales declined by 14%.
• 5Gross margin improved substantially to 43.8% from 39.8% in the prior year's quarter.
• 6The company repurchased $20.4 billion of its common stock and paid $3.7 billion in dividends.
• 7Operating expenses increased, with Research and Development growing by 22% and SG&A by 15%, reflecting continued investment in innovation.

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