Apple’s Q4 myth is no longer: the new iPhone will not bring performance ahead of schedule, and the revenue growth in Greater China suffers from Waterloo

Source of this article: Times Finance Author: Wang Ting

iPhone14 series source: Times Finance

On October 27, local time, Apple released its financial report for the fourth quarter (Q4) of fiscal year 2022 as of September 24. Under the condition that the iPhone 14 series was on sale ahead of schedule on September 16, revenue and net profit during the period were They increased by 8% and 0.8% respectively.

Previously, the iPhone 12 series and the iPhone 13 series were launched on September 23, 2020 and September 24, 2021, respectively, and both were stuck at the end of Q4.

The financial report shows that in the three months ended September 24, Apple’s revenue and net profit were $90.1 billion and $20.7 billion, respectively, and quarterly diluted earnings per share (EPS) were $1.29, a year-on-year increase of 4%.

Compared with the same period last year, Apple’s revenue and net profit in Q4 of fiscal year 2021 ended September 25 were US$83.4 billion and US$20.6 billion, respectively, a year-on-year increase of 29% and 62%.

According to data from Refinitiv, a global financial market data provider, Apple’s Q4 revenue and earnings per share in fiscal 2022 exceeded Wall Street expectations, and the core product, the iPhone, fell short of Wall Street expectations.

In Q4 of fiscal 2022, the iPhone brought Apple about $42.626 billion in revenue, lower than Wall Street’s forecast of $43.21 billion and an increase of 9.7% over the same period last year. In Q4 of fiscal 2021, iPhone revenue increased by as much as 47% year-on-year.

In the three months ended September 24 this year, iPad revenue was US$7.174 billion, a year-on-year decline of more than 13%, and the rest of the product lines all increased. In October, Apple’s official website adjusted the prices of old products such as iPad 9, iPad mini 6, and iPad Air 5 or related to them.

From a geographic perspective, Apple’s revenue from the Americas, Europe, and Greater China in Q4 of fiscal year 2022 is about $39.8 billion, $22.8 billion, and $15.5 billion, respectively, an increase of about 8%, 10%, and 6% over the same period last year.

In Q4 of fiscal 2021, Apple’s revenue in Greater China increased by 83% year-on-year, nearly doubling. Apple has outperformed other brands in the mainland Chinese market amid the continued downturn in the smartphone market.

According to data from CINNO Research, in September this year, Apple topped the smartphone sales list in mainland China with the iPhone 14 series, with sales of 4.6 million units, a year-on-year increase of 26.8%. The sales of Honor and OPPO ranked second and third respectively.

From July to September this year, smartphone sales in mainland China were about 62.2 million units, down 20.8% year-on-year. Apple topped the list with 10.5 million units, up 12.4% year-on-year. OPPO and Honor ranked second and third.

Liang Zhenpeng, a senior industry observer, said in an interview with Times Finance that Samsung has basically withdrawn from the Chinese market now, and Huawei has no new 5G mobile phones. Many high-end consumers can only switch from Samsung and Huawei to the iPhone camp. This is the highest year-on-year increase in iPhone sales from July to September. important reason.

Source of a corner of the Apple Store in Shenzhen: Times Finance

In his opinion, although there are a lot of noises after the iPhone 14 series is launched, it is mainly aimed at the standard version and Plus. The iPhone 14 Pro and iPhone 14 Pro Max have a good response in the market, which has driven the sales of the entire series.

In addition, he also mentioned that the rare price reduction of the iPhone 13 will also help Apple’s sales in July-September. According to Apple’s official website, starting from September 8, the price of iPhone 13 will be reduced by 300-600 yuan.

What does Apple think about its Q4 performance in fiscal 2022?

Apple CEO Tim Cook said in an interview with the media that if the dollar had not strengthened, Q4 revenue growth could have reached double digits, and he also mentioned that Apple has slowed down the pace of hiring.

According to Cook, Q4 iPhone sales in fiscal 2022 were strong, with an increase in users shifting from the Android camp to Apple, and the sales of the iPhone 14 Pro and Pro Max were also constrained by supply, which was in short supply.

In addition, the financial report shows that in the 2022 fiscal year ended September 24, Apple’s revenue and net profit were US$394.3 billion and US$99.8 billion, respectively, a year-on-year increase of 7.79% and 5.41%. On the earnings call, Apple executives revealed: “We believe total company revenue growth will slow in Q1 of fiscal 2023 compared to Q4.”

On October 27, local time, Apple closed at $144.8 per share, down 3.05%, with a total market value of $2.33 trillion. As of 20:00 that day, it rose 0.41% after the market.