On October 28, Apple released its financial results for the fourth quarter of fiscal 2022 (ie, the 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%. Both revenue and profit exceeded expectations.
From the perspective of Apple’s industrial chain, in the third quarter, Pengding Holdings, Xinwangda, Desai Battery, Xinwei Communication, USI, Anjie Technology, Dongshan Precision and many other “fruit chain” leading companies increased their net profits in the third quarter. .
iPhone revenue growth
In terms of products, in the third quarter, iPhone 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.
According to a report from market research firm Canalys, in the third quarter, Apple was the only mobile phone manufacturer among the top five in the world that achieved positive year-on-year growth in shipments. Apple ranks second globally with an 18% market share due to the relatively resilient market demand for iPhones.
In addition, in the third quarter, Mac revenue was $11.508 billion, a year-on-year increase of 25.39%; iPad revenue was $7.174 billion, a year-on-year decrease of 13.06%; wearable devices, home products and accessories revenue was $9.650 billion, a year-on-year increase of 9.85%; service business revenue was 19.188 billion USD, an increase of 4.98% year-on-year.
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 series is sought after by consumers in the Chinese mobile phone market. On October 27, according to data from market research firm CINNO Research, Apple’s mobile phone returned to the top of the market with sales of about 4.6 million units in September, 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 Apple, relying on its advantages in brand, software and hardware, and ecology, 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 richer product portfolio in more price ranges.
The overall performance of the “fruit chain” company is improving
From the perspective of the Apple industry chain, Dongcai Choice data shows that as of noon on October 28, 81 Apple industry chain companies have disclosed their third-quarter reports, and 53 companies have achieved a year-on-year increase in net profit attributable to the parent in the first three quarters. Among them, there are 30 companies with an increase of more than 30%.
A reporter from China Securities Journal found that in the third quarter, Pengding Holdings, Xinwangda, Desai Battery, Xinwei Communication, USI, Anjie Technology, Dongshan Precision and other companies increased their net profits in the third quarter.
Pengding Holdings is a leading company in the PCB (printed circuit board) industry. 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%. Regarding the profit level of Pengding Holdings exceeding expectations, China Merchants Securities said that compared with the same period last year, the proportion of new products stocked by 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 third-quarter results exceeded market expectations, due to the better business needs of customer A (Apple), such as new product stocking and power tools, and foreign exchange gains.
iPhone 14 Pro series stocking ratio is expected to increase
Western Securities said that although the shipments of the iPhone 14 Pro series have surged, the purchase of ordinary iPhone 14 and iPhone 14 Plus models has been deserted. This year is probably the year with the biggest change in Apple’s mobile phone structure in recent years. It is expected that the shipments of the iPhone 14 series can still remain at 80 million to 90 million units. However, due to the substantial increase in the proportion of high-end models of the iPhone 14 Pro series, the average selling price of a single machine will increase, and the shipments of components of the high-end version may slightly exceed market expectations.
Huatai Securities believes that although the overall demand in the mobile phone industry is sluggish, Apple’s new products are still the biggest positive for the industry chain in the second half of the year. In the third quarter, many leading companies in the “fruit chain” achieved a high growth in net profit due to the advance purchase and release of new Apple products for about a week. However, entering the fourth quarter, considering that the regular iPhone 14 models were not upgraded much and the follow-up demand was weak, there were challenges in the performance of the consumer electronics industry chain companies in the fourth quarter.
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. ) is expected to benefit from the adjustment of the new aircraft stocking structure.
Market research firm TrendForce released a research report saying that the production ratio of the two 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%.
Editor: Ye Song