● Our reporter Zhang Xingwang
On October 28, Apple released its financial results for the fourth quarter of fiscal 2022 (third quarter of 2022). In the third quarter, Apple’s operating income was US$90.146 billion, a year-on-year increase of 8.15%; its net profit was US$20.721 billion, a year-on-year increase of 0.83%.
From the perspective of A-share Apple industry chain companies, in the third quarter, Luxshare Precision, Pengding Holdings, Xinwangda, Desay Battery, Xinwei Communication, USI, Anjie Technology, Dongshan Precision and many other companies realized the return to their mothers. The net profit increased significantly year-on-year, and the performance was generally good.
Mobile phone business revenue growth
In terms of products, in the third quarter, the iPhone business revenue was US$42.626 billion, a year-on-year increase of 9.67%, accounting for 47.29% of Apple’s revenue.
In September, Apple released the iPhone 14 series. Apple CEO Tim Cook said that Apple’s performance in mobile phone sales remained strong, but the supply of the company’s high-end mobile phone iPhone 14 Pro series was affected.
In the third quarter, among the top five mobile phone manufacturers in the world, only Apple achieved positive year-on-year growth in shipments. On October 28, the market research firm Strategy Analytics released a report saying that in the third quarter, the global shipment of Apple iPhones was 49 million units, a year-on-year increase of 6%, and the market share was 16%, ranking second in the world. Driven by the iPhone 14 Pro series, Apple’s third-quarter performance was impressive, but the market’s demand for the iPhone 14 has weakened.
In addition, in the third quarter, the revenue of the Mac computer business was US$11.508 billion, a year-on-year increase of 25.39%; the revenue of the iPad tablet business was US$7.174 billion, a year-on-year decrease of 13.06%; the revenue of wearable devices, home products and accessories business was US$9.650 billion, a year-on-year increase 9.85%; service business revenue was US$19.188 billion, a year-on-year increase of 4.98%.
It is worth noting that in the third quarter, Apple’s Greater China revenue was US$15.470 billion, a year-on-year increase of 6.23%.
Apple’s iPhone 14 Pro series is sought after by consumers in the Chinese mobile phone market, driving Apple’s iPhone sales growth. On October 27, data from CINNO Research, a market research institution, showed that in September, Apple iPhone returned to the first place in the Chinese market with sales of about 4.6 million units, a year-on-year increase of 26.8% and a month-on-month increase of 68.4%. For the reason, CINNO Research said that it was mainly due to the launch of Apple’s new iPhone 14 series and the continued good market performance of the iPhone 13 series.
CINNO Research believes that relying on its advantages in brand, software and hardware, and ecology, Apple not only has an advantage in the high-end mobile phone market, but also has gradually entered a rapid growth channel in terms of shipments through a product portfolio in more price segments.
Industrial chain companies benefit from performance
From the perspective of A-share Apple industry chain companies, Dongcai Choice data shows that as of 18:00 on October 28, 88 Apple industry chain companies have disclosed their third-quarter reports, and 57 companies have achieved a year-on-year increase in net profit attributable to the parent in the first three quarters. . Among them, there are 34 companies with an increase of more than 30%.
From the perspective of the third quarter, the performance of leading companies in the Apple industry chain has improved. A reporter from China Securities News found that in the third quarter, Luxshare Precision, Pengding Holdings, Xinwangda, Desay Battery, Xinwei Communication, USI, Anjie Technology, Dongshan Precision and many other companies achieved a net return to their mothers in the third quarter. Profits increased significantly year-on-year.
According to industry insiders, in the third quarter, due to the early release of Apple’s new products about a week ahead of schedule, many leading companies in the Apple industry chain achieved high growth in net profit attributable to their parent companies.
Luxshare Precision is an important supplier to Apple. In the third quarter, Luxshare achieved a net profit attributable to its parent of 2.616 billion yuan, a year-on-year increase of 63.47%. Pengding Holdings is a leading company in the PCB (printed circuit board) industry, and Apple is its major customer. In the third quarter, Pengding Holdings achieved a net profit of 1.838 billion yuan attributable to its parent, a year-on-year increase of 75.93%. China Merchants Securities said that compared with the same period last year, the proportion of new products stocked by Pengding Holdings’ major customers increased, resulting in an improvement in gross profit margin.
Sunwoda and Desai Battery are battery suppliers for Apple products. In the third quarter, Xinwangda achieved a net profit attributable to its parent of 316 million yuan, a year-on-year increase of 504.79%; Desay Battery achieved a net profit of 298 million yuan attributable to its parent, a year-on-year increase of 34.09%. China Merchants Securities said that Desay Battery’s performance in the third quarter exceeded market expectations, mainly due to better business demand for customer A (Apple) new product stocking and power tools and foreign exchange gains.
The stocking structure of new aircraft is expected to continue to adjust
Western Securities said that although shipments of the iPhone 14 Pro series have increased significantly, the market for the regular iPhone 14 and iPhone 14 Plus models is deserted. This year is the biggest change in Apple’s mobile phone structure in recent years, and it is expected that the shipments of the iPhone 14 series will remain at 80 million to 90 million units.
Huatai Securities believes that entering the fourth quarter, considering that the regular iPhone 14 models are not upgraded much and follow-up demand is weak, the performance of consumer electronics industry chain companies in the fourth quarter will be challenging.
CITIC Securities said that based on the current iPhone 14 series reservations and delivery cycle, it is expected that Apple may adjust the stocking structure in the future, and is expected to increase the stocking ratio of the iPhone 14 Pro series. Supply chain-related companies are expected to benefit from the adjustment of the stocking structure for new machines.
According to a research report released by TrendForce, a market research organization, the production ratio of two mobile phones in the iPhone 14 Pro series has increased from 50% to 60% in the initial plan, and it is not ruled out that it will continue to increase to 65% in the future. Overall, Apple’s iPhone shipment target in 2022 is still 240 million units, a year-on-year increase of 2.8%.