Apple’s quarterly profit and revenue fell 3% but beat forecasts

Apple's quarterly profit and revenue fell 3% but beat forecasts

Revenue of the American Apple Inc. in the second financial quarter ended on April 1 decreased by 3% and amounted to $94.8 billion compared to $97.3 billion in the same period of the previous fiscal year. The figure exceeded the expectations of experts. Experts polled by FactSet had forecast an average of $92.9 billion.

Net profit in the last quarter also fell to $24.2 billion from $25 billion a year earlier, the company said in a press release. The indicator per share remained unchanged at $1.52, while the consensus forecast of analysts was $1.43 per share.

The company stopped making forecasts during the coronavirus pandemic, but CFO Luca Maestri told analysts in a press conference that he expects similar dynamics in the second quarter. Thus, Apple may record a decrease in revenue for three consecutive quarters, which has not been observed since 2016, notes MarketWatch.

The company’s quarterly revenue from iPhone sales rose 1.5% to $51.33 billion, while experts had expected a decline to $48.7 billion.

Mac revenue dropped 31% to $7.17 billion (predicted $7.8 billion), iPad revenue was $6.67 billion, down 13% year-on-year and in line with market expectations.

Head of Apple Tim Cook attributed the drop in PC sales to a high comparative base, as a year earlier there was a surge in demand for these devices against the backdrop of the introduction of new M1 processors.

Service revenue (App Store, Apple Music, Apple Pay and iCloud) grew by 5.5% and reached $20.91 billion (forecast – $21 billion). Revenue from the sale of wearable devices and accessories remained virtually unchanged and amounted to $8.76 billion (forecast – $8.4 billion).

Apple sales in China (including Hong Kong and Taiwan) in the second financial quarter decreased by 3%, to $17.81 billion. Revenue in North and South America decreased by 7.6%, to $37.78 billion, in Europe – increased by 2, 8%, to $23.95 billion, in Japan – jumped by 15%, to $8.12 billion.

Apple also announced an expansion of its share buyback program by an additional $90 billion and a 1 cent increase in its quarterly dividend to 24 cents per share.

Apple shares rose 2.5% in Thursday’s additional trading. Since the beginning of this year, the company’s capitalization has jumped by 27.6% to $2.65 trillion.

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