Cook said that Apple will lose $8 billion due to the supply chain.

Cook said that Apple will lose $8 billion due to the supply chain.

Cook said that Apple will lose $8 billion due to the supply chain, and the shortage of supply chain has a huge impact on Apple's shipments. The manufacturing industry cannot operate normally, affecting many factories of Apple suppliers. Cook said that Apple will lose $8 billion due to the supply chain.

Cook said that due to the impact of the supply chain, Apple will lose $8 billion. 1 global inflation and epidemic blockade are still going on, but for Apple CEO Cook, what he is most worried about at present is not the slowdown in consumer demand, but the continued tension in the supply chain. This is different from the judgment of some analysts.

Apple announced a strong quarterly financial report after the close of trading on April 28th. However, after warning of increased costs caused by the supply chain, Apple's share price fell by more than 2%.

Apple's chief financial officer told analysts in the earnings conference call that supply chain problems will cost sales of $4 billion to $8 billion this quarter, which is far greater than the previous quarter.

In the latest fiscal quarter, Apple's revenue was $97.3 billion, an increase of 8.6% compared with the same period of last year, with a profit of $25 billion and a gross profit margin of 43.7%. Apple's iPhone sales reached $50.6 billion, up 5.5% year-on-year, and service sales increased by 17% to19.8 billion, both higher than analysts' average expectations.

In the past quarter, Apple's sales growth in Greater China slowed down to 3.47%, reaching $654.38+$0.834 billion. However, Cook denied that factors related to the epidemic blockade affected sales this quarter.

An analyst who participated in Apple's earnings conference call told the First Financial Reporter: "I was asked about China many times at the press conference, but Cook said that several Apple product assembly plants in China have resumed work; He also said that the recent decline in infection cases in China has given people a glimmer of hope. "

"This shows that Apple is still highly concerned about the impact of the China epidemic on its business," the analyst told China Business News.

It is said that many analysts have asked questions about global inflation and consumer demand, which Cook does not agree with. He said: "We are paying close attention, but frankly, our main focus is still on the supply side."

Cook said that problems related to the supply chain still exist in other chips that support 5G chips. However, Apple did not predict when the shortage of traditional chip products that mainly affect the supply chain will last.

Luca Maestri, Apple's chief financial officer, warned in an interview that due to the situation in Russia and Ukraine, Apple's sales in the next quarter may be greatly reduced; At present, the supply problem is mainly concentrated in a supply chain related to Shanghai, which reflects the chip shortage caused by the epidemic blockade. He also said that the epidemic will also affect the demand in the China market, and global inflation will also affect consumer spending.

However, Cook stressed: "The problem of the epidemic is temporary and will get better over time." Analysts believe that Apple still lacks clear guidance for the future.

Zhu Jiayu, an analyst at Konas, told CBN: "The supply chain will definitely have some impact on Apple's production, but it is difficult to predict how big the impact will be. Now we think demand is the biggest problem. "

Zhu Jiamao said that Apple did face the problem of supply shortage last year, but it suddenly did not lack it in the first quarter of this year. "This also shows whether there is some moisture in the demand that was shouted last year, so we have to ask a question mark." He told the first financial reporter.

Analysts also said that the new products released by Apple in the second half of the year may be more affected by the supply chain. "Apple may still be mainly worried about the mass production and delivery of iPhone 14 in the second half of the year." Guo Zijiao, an analyst at Omdia Display, told the First Financial Reporter.

In the context of the slowdown in global smartphone sales growth, in the first quarter of this year, Apple was the only brand among the top five smartphone manufacturers in the world whose shipments were still growing. According to the latest research report released by Konas, Apple shipped 56.5 million units in the first quarter, up 8% year-on-year, and the global market accounted for 18%, ranking second only to Samsung. This is mainly due to the high demand of Apple's iPhone 13 series.

The data of Konas also shows that in the first quarter of 2022, global smartphone shipments were 311200 million units, down 1 1% year-on-year. Samsung, which ranked first in shipments, shipped 73.7 million mobile phones in the first quarter of this year, down 4% year-on-year. Xiaomi, OPPO and vivo ranked third to fifth respectively in global smartphone shipments.

Cook said that Apple will lose $8 billion due to the supply chain. "This is obviously a strong cycle." In the early morning of April 29th, Beijing time, Apple released the results for the second fiscal quarter of fiscal year 2022 (202 1 10 to September 30th, 2022), and CEO Tim Cook said that "the iPhone business was successful this quarter".

As of March 26, Apple's net revenue in the second fiscal quarter was 97.278 billion US dollars (about 644.5 billion yuan), a year-on-year increase of 9%. The net profit was $250 1 billion (about RMB165.7 billion), up 6% year-on-year. Greater China's revenue was US$ 65.438+US$ 08.343 billion, a year-on-year increase of 3%. The gross profit margin in the second quarter was 43.7%, which was basically the same as that in the previous quarter.

Apple is still "sucking gold", with a quarterly net profit of 65.438+0657 billion, which is equivalent to earning 65.438+08 billion every day. As of press time, Apple's share price rose by 4.52% to close at 163.64 USD, with a total market value of 2.67 trillion USD, which is equivalent to 6 Tencent.

After the earnings report was released, Cook said in a conference call that Apple was not immune to the challenges brought by the conflicts in COVID-19, supply chain and Ukraine. In the next quarter, Apple's revenue will still be constrained by the supply chain, bringing an impact of 4 billion to 8 billion US dollars (about 26 billion to 52 billion yuan).

In this regard, Apple adjusted its coping strategy. At the same time, we are also looking for new growth opportunities.

Another round of super growth cycle

In the last fiscal quarter, Apple's revenue was $65.438+$023.9 billion, a record high. On the whole, Apple's quarterly revenue is linked to the release time of new products, showing periodic fluctuations: the annual autumn new product launch conference of 10 often makes the quarterly financial report the best in a year.

Although the overall growth rate began to slow down this quarter, thanks to the increasing demand of consumers for new iPhone and wearable devices, Apple seems to have found another super growth cycle.

Yuan yuan apple financial report

According to the financial report, the revenue of iPhone, which contributed more than half of Apple's revenue, was $50.57 billion, a year-on-year increase of 5.5%. This means that iPhone 13 and iPhone have gained a good market.

In particular, iPhone 13, dubbed by netizens as "Thirteen Fragrances", has a high popularity and sales volume. On the night of the sale, official website was paralyzed because of excessive traffic, and the first batch was sold out and replenished overnight. In the first quarter, iPhone 13 accounted for 38% of the total iPhone sales. IPhone 13 Pro and Pro Max have higher positioning, with an average price of 10000 yuan, which also accounts for 30% of the total iPhone sales. Due to the strong sales performance, Apple also raised the total output target of the iPhone 13 Pro series in the second quarter to100000 units.

This is already a good result. Especially in the overall downturn of the smartphone market, Apple has seized many Android users, and its market share has increased from 15% to 18%. Cook said that the iPhone business was successful in switching Android phone users this fiscal year, and the growth rate even reached a double-digit percentage.

According to the data released by market research organization Konas, global smartphone shipments decreased 1 1% in the first quarter of 2022. Among them, Samsung ranked first with 24% market share, Apple 18%, Xiaomi 13%, OPPO and vivo ranked fourth and fifth, respectively, 10% and 8%.

The figure comes from the data of the city dispatching organization of Konash Company.

In addition, the quarterly performance of Mac and wearable devices also hit a new high. Mac earned $65.438+0.0435 billion, a year-on-year increase of 654.38+04.73%; Wear, home and other equipment generated revenue of $8.806 billion, up 65,438+02.37% year-on-year. Cook said that more than 66.7% of Apple Watch users purchased this quarter were new users. According to Counterpoint Research, Apple's Apple Watch continues to be the most popular smart watch on the market.

The financial report shows that Apple's service revenue this quarter was $654.38+$0.982 billion, a year-on-year increase of 654.38+07.28%. By the end of this quarter, Apple had more than 825 million users of various services, reaching the highest level in history, an increase of more than 65.438+65 million over the same period last year.

As early as 20 19, Cook held a conference without hardware, which drew a blueprint for Apple's future transformation from a hardware technology company to a service subscription company, including the original content of the game subscription service AppleArcade and TV Apple TV. Since then, Apple has completely transformed into a service-oriented company, implementing application subscription services, and making more consumers rely on the Apple ecosystem. Subscription service has also become Apple's new main source of income-second only to selling iPhone.

In addition to "selling services" to consumers, Apple has also played a corporate abacus. In April this year, Apple announced the launch of the Business Essentials service to help small businesses set up and manage Apple software. It is reported that the price of each user ranges from $2.99 to $65,438+$02.99, which varies according to the number of devices required by each employee and the storage space of iCloud.

Hardware, software and service are the three elements for Apple to build an ecology and create a super cycle. Cook said that Apple "likes to work towards products that require a combination of hardware, software and services" and "believes that miracles will happen at that intersection." He explained that Apple's current product portfolio still has opportunities for growth.

For the next opportunity, industry speculation is hardware subscription service and two future products, electric self-driving cars and some AR/VR headsets. In the past few years, Apple has also acquired a large number of related companies.

Compromise in the crisis of lacking "core"

According to the financial report, among all products, only the iPad performed below expectations, and the revenue of iPad was 7.646 billion US dollars, down 1.92% year-on-year. This state was also obvious in the last fiscal quarter.

Cook blamed it on "a very obvious supply bottleneck", and Mac products were also restricted by the COVID-19 epidemic and silicon materials. Although "Apple's supply chain has always been flexible, chips are the main problem."

According to Henry Kissinger, CEO of Intel, the chip problem that plagues global hardware companies is expected to last until 2023. Even Cook, who is known as the "supply chain master" and entered the core management of Apple, was stumped by a small chip.

What Apple lacks is not the high-end core CPU of A series or M series, but the mature process chips needed by many components such as display screens and wireless components. The tight supply of chips makes the scheduled and delivery cycle even close to 22 weeks.

The shortage of supply chain has a huge impact on Apple's shipments. Judging from the location of supply chain enterprises announced by Apple, the manufacturers of iPhone 13 out-of-stock parts are mostly located in Southeast Asian countries such as Vietnam and Malaysia. Due to the attack of Delta and Omicron, the local manufacturing industry could not operate normally, which spread to many factories of Apple suppliers, making it impossible to produce or transport parts.

According to industry insiders, if the latest iPhone products cannot be delivered in time, "too long waiting time" will become the reason for consumers to wait for new iPhone products next year.

In this regard, Apple made a compromise. In order to stabilize the production of iPhone 13, Apple sacrificed the production capacity of iPad products. Specifically, the iPad and other series parts are transferred to the production line of iPhone 13 series. "World Online Merchant" has been confirmed in Apple official website. IPhone 13 series is available, iPad series needs to wait 20-27 days, and Mac series needs to wait 27-34 days.

Abandoning the iPad to protect the iPhone is a compromise made by Apple to deal with supply chain problems. It is not surprising that the revenue of iPad business has been lower than expected for two consecutive quarters.

Generally speaking, despite the influence of "grey rhinoceros", apples are still growing. Cook's ten years in power is the fastest growing decade for Apple's market value and share price. The market value has reached the highest level of more than $3 trillion from $334 billion in 20 10 to $334 billion in June this year, which also brought Apple into the sight of Warren Buffett and became a heavyweight stock of Berkshire Hathaway.

Cook said that Apple will lose $8 billion due to the supply chain. Apple executives warned that the company could suffer losses of up to $8 billion this quarter due to supply chain shortages and factory closures in China. This highlights the importance of China's production capacity to the world's most valuable company.

This year's supply will face long-term uncertainty.

Maestri, Apple's chief financial officer, said on Thursday: "Outbreak-related disruptions and supply constraints caused by silicon shortage in the whole industry are affecting our ability to meet customers' demand for our products." He predicted that these restrictions will reduce revenue by $4 billion to $8 billion this quarter, much higher than Apple's revenue in March.

Cook, CEO of Apple: I think we have done a reasonable job in dealing with a challenging environment/Source: Bloomberg /FT

This remark also highlights that Apple, which relies heavily on complex supply chains, will face long-term uncertainty this year. Before the outbreak, Apple often provided quarterly income guidance, but with the spread of the epidemic, Apple stopped publishing this data. At the same time, this remark is also the most severe warning issued by Apple since February 2020, when the company said that "the speed of returning to normal conditions is slower than we expected".

After the news came out, Apple's share price plunged 6.2% in late trading to $65,438+053.50. Before the company issued the warning, its share price had fallen by about 7.8% this year. Apple said that the latest supply problem only started at the end of March, so it was not affected last quarter.

"5G iPhone" continues to bring super bonus

Apple said earlier on Thursday that its sales in the second quarter increased by 8.6% to $97.3 billion, setting a record for non-holiday season. The increase in profit was mainly due to the record revenue of Apple's service department, which increased by 65,438+07% to US$ 6,543,809.8 billion, including app store revenue, iCloud subscriptions and more and more music and entertainment digital services. As the gross profit margin of the service business exceeds 72.6%, its profit of $654.38+044 billion in the last quarter alone was almost twice the net profit of $7.5 billion of Facebook's parent company Meta.

Apple's sales continue to grow, but not as fast as last year/Source: Bloomberg

In addition, the total iPhone sales increased by 5.5%, bringing in 50.6 billion US dollars, accounting for 52% of the total revenue, which confirmed that the iPhone 12' s 5G upgrade super cycle from the end of 2020 is still continuing. Mac revenue jumped 15% to 104 billion USD.

The revenue of wearable devices business, including watches and AirPods, increased by 65,438+02% to $8.8 billion. However, iPad sales were not satisfactory, and revenue fell by 2% to $7.7 billion. Maestri mentioned the limitations of silicon in the supply chain. It is reported that Apple prefers to equip the iPhone with chips instead of the iPad.

In various regions, the results are mixed. In the United States, sales jumped by 19% to reach $40 billion; European sales increased by 4.6% to $23.3 billion; Sales in Greater China increased by 3.5% to US$ 654.38+083 billion. In contrast, sales in Japan were stable at $7.7 billion, while sales in other countries in the Asia-Pacific region fell by 6.7% to $7 billion.