Apple’s all-time record holiday quarter was almost perfect

Apple’s revenue growth is expected to slow down in 2022 as it compares to the iPhone 12 (first 5G iPhone) supercycle. But, that fact didn’t stop the Cupertino Colossus from blowing past estimates in its record fiscal first-quarter earnings report.

In this episode of The Motley Fool‘s “Beat and Raise,” contributors Trevor Jennewine and Brian Withers discuss Apple’s latest quarter and why the company looks unstoppable.

Trevor Jennewine for The Motley Fool:

Revenue came in at… $123.9 billion there. Beat on the topline, earnings-per-share rose 25%. That was a beat on the bottom line. To put those numbers in perspective, the company beat by 4% on the top and 11% on the bottom. It’s good to see both of those numbers coming in higher than expectations…
The rest of the story is good too. Gross margin is up to 43.8%. That’s up from 41.7, so 2% jump in gross margin. Free cash flow up 25% to $44.2 billion. iPhone and Mac and wearables segments all beat expectations. iPhone sales were up 9% to $71.6 billion. This is the first full quarter of iPhone 13 sales so a sharp deceleration from their iPhone sales growth last quarter, but still coming in above expectations. Max segment was $10.9 billion, that was up 25%. Then, the wearables home and accessories was up 13% to $14.7 billion.
The only thing they missed was iPad. iPad was up 14%, and that was a slight miss on iPad sales. Also, noteworthy, the services segment grew 24% to $19.5 billion. Good to see that high-margin services segment growing. This is a slight deceleration from the previous quarter, but 24% still strong.

MacDailyNews Take: Save for the supply chain crisis caused by the various and sundry, rational and irrational, responses to COVID-19 around the world, that impacted Apple’s iPad supply (as they shifted limited legacy semiconductors in favor of iPhone over iPad), this quarter would have been perfect.
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