Apple (AAPL-US) announced the fourth quarter financial report of the fiscal year on Thursday. The overall revenue reached a record high. iPhone revenue grew by 47%, but both were lower than market expectations. However, sales in the Greater China region surged by more than 80%, which is one of the few financial reports. Highlights. Chief Executive Tim Cook said that the chip shortage led to a $6 billion reduction in sales, and the situation may be worse this quarter, with the stock price falling 3.53% after the market.
F2021 Q4 (end of 9/25) financial report key figures vs. Refinitiv analyst expectations
- EPS after dilution: $1.24 vs. $1.24
- Net revenue: annual growth of 29% to 83.36 billion US dollars vs. 84.85 billion US dollars (Refinitiv analyst expectations)
- Gross profit margin: 42.2% vs. 42.0%
The performance of each terminal product vs. Refinitiv analyst consensus expectations
- iPhone revenue: 38.87 billion U.S. dollars (47% annual growth) vs. 41.51 billion U.S. dollars
- Mac revenue: US$9.18 billion (annual increase of 1.6%) vs. US$9.23 billion
- iPad revenue: US$8.25 billion (annual increase of 21.4%) vs. US$7.23 billion
- Wearables, home equipment and accessories revenue (including AirPods and Apple Watch): 8.79 billion U.S. dollars (annual increase of 11.5%) vs. 9.33 billion U.S. dollars
- Service revenue (including iCloud, Apple Music): US$18.28 billion (annual increase of 25.6%) vs. US$17.64 billion
Sales by region
- Americas: 36.82 billion U.S. dollars (20% annual increase)
- Europe: US$2.08 billion (annual increase of 23%)
- Large Chinese food: 14.56 billion Miwon (annual increase 83%)
- Japan: 5.99 billion Miwon (annual increase 19%)
- Other Asia: US$5.19 billion (annual increase of 25%)
Point 1: Chip shortage worsens
Apple confirmed for the first time in July that the chip shortage affected the iPhone and iPad production lines. Cook said on Thursday that the shortage had a greater impact on Apple’s fourth quarter than expected, and it was estimated that it would reduce revenue by US$6 billion.
He pointed out that although the output of Apple’s Southeast Asian factories had “substantially improved” before the end of October, the chip shortage has not ended and is affecting “most products” of Apple.
Cook explained that the shortage is not advanced semiconductors such as Apple Silicon, but traditional process node components, such as modem chips and power management chips. “We are doing our best to get more (chips), do all the things we need for our operations, and make sure everything goes smoothly.”
Point two: iPhone Q4 revenue is lower than expected
The revenue of all Apple products maintained growth in the fourth quarter, but the performance of iPhone, Mac and accessories (including AirPods and Apple Watch, etc.) were lower than market expectations, while services and iPad performed better. Cook said that in the fourth quarter, Apple’s service sector revenue increased by 11% annually, exceeding the company’s expectations.
Apple launched the iPhone 13 in September, and the fourth quarter earnings report only included sales of new phones in just a few days. And from Cook’s optimistic statement that revenue will maintain strong growth in the first quarter, it is speculated that the demand for iPhone 13 in the year-end shopping season may exceed Apple’s supply.
Apple also announced new MacBook, iPad, Apple Watch and AirPods in October, so the fourth quarter earnings report does not include sales of these new products.
Point three: iPad Q1 sales may decline
Cook warned that the chip shortage to this season (Apple’s fiscal year 1st quarter, October to December) may be more severe, affecting the end-of-year shopping season.
Chief Financial Officer Luca Maestri said that due to supply chain bottlenecks, iPad sales in the first quarter will decline from the same period last year, but other products can maintain growth.
Apple has not provided exact financial estimates for many quarters. Cook expects that the overall revenue in the first quarter will maintain a “strong annual growth rate”, setting a new record in the company’s history. Wall Street analysts predict that revenue in the first quarter will increase by 7.4% to $119.7 billion.
Point 4: Great China region is eye-catching
In the fourth quarter of the Greater China region, growth was impressive, with annual revenue increasing by 83% to US$14.56 billion.
Wall Street View
Investing.com analyst Haris Anwar said that the impact of supply chain issues on Apple has exceeded Wall Street expectations. If the situation continues, it will drag down Apple’s performance in the important year-end shopping season and threaten the market’s optimistic view of Apple’s revenue, EPS and cash. Stream prediction.
