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Apple stock still down on revenue growth

Apple shares fell nearly 4% in after-hours trading, even as the company reported a 9% rise in first-quarter revenue.

Apple just announced its first-quarter 2022 results. As a result, revenue rose nearly 9% compared to the first quarter of 2021, representing strong growth and partially dispelling investor concerns about the environment. Macro instability will affect demand for smartphones and computers. advanced.

Specifically, Apple’s revenue reached $97.28 billion, an increase of 8.59% over the same period in 2021; iPhone revenue reached $50.57 billion, an increase of 5.5%; service revenue reached $19.82 billion, an increase of 17.28%; other product revenue reached $8.81 billion, Up 12.37% %; Mac revenue reached $10.44 billion, up 14.73%; iPad revenue was $7.65 billion, down 1.92%; profit margin was 43.7%, 43.1% higher than expected.

However, the stock fell nearly 4% in after-hours trading after Chief Financial Officer Luca Maestri spoke of some difficulties in the quarter, including a potential drop in sales of $4 to $8 billion. Dollar. Due to supply pressures related to Covid-19. The tech giant also warned that demand in China was affected by the Covid-19 lockdown.

CEO Tim Cook added that Apple is not “immune” to supply chain challenges.

Apple did not provide a forecast for the second quarter. The company has been doing this since February 2020 due to the Covid-19 outbreak. In addition, Apple’s board of directors approved a $90 billion share repurchase program; the dividend was increased by 5% to 23 cents per share.

The above results show that sales of the iPhone 13 are still good. According to Cook, the iPhone saw a quarter of success thanks to sales from people who had used Android before. He said he had record double-digit growth in customer upgrades and conversions.

The Mac computer market also saw strong growth after Apple switched its product line to its own M1 chips instead of Intel chips. However, despite the introduction of new models with the M1 chip, the iPad remained “flat”, with sales down 2.1%. Mr. Cook revealed that the iPad was particularly troubled by the supply chain in the first quarter.

The head of Apple confirmed that financial results were “better than expected.” The fastest growing region was the U.S., with revenue up 20% to $50.57 billion, followed by China (including Hong Kong and Taiwan), up 3.47% to $18.34 billion. . .

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