25, well above the $1.90 estimated by analysts. After topping a market value of $3 trillion in early January, Apple is now worth less than $2.8 trillion.Įarnings for the Cupertino, California-based company rose to $2.10 a share in the first quarter, which ended Dec. Concerns about a sales slowdown and looming interest rates hikes have made the sector less appealing in the past month, with Apple itself suffering from the retreat. Investors have been looking to Apple for reassurance after a recent rout battered technology stocks. She reiterated Apple as her top pick for 2022.īefore Apple's results were released Thursday afternoon, its shares had fallen 10% this year, hurt by a broader downturn. The earnings report “highlights the strength, and stickiness, of Apple's ecosystem,” Morgan Stanley's Katy Huberty said in a note to clients. Wall Street was broadly happy with Apple's results and its ability to navigate the supply chain crisis while also introducing a flood of new products. The Biden administration has also stated that the global semiconductor shortage will persist until at least the second half of this year. STMicroelectronics NV, which counts Apple as a major customer, said Friday it doesn't see a letup in the chip shortage before 2023. A resurgence of Covid 19, skyrocketing shipping costs and labor shortages continue to strain the global supply chain. However, Apple may be an early outlier in resolving supply chain issues, thanks in part to its dominant position in obtaining parts from suppliers.
But the tech giant navigated the crisis and benefited from a flood of new products, including the iPhone 13, Apple Watch Series 7 and updated Macs. Apple Chief Executive Officer Tim Cook had warned late last year that shortages could cost the company more than $6 billion in sales during the all-important holiday period. The surprisingly strong results from Apple suggest that fears of supply upheaval were overblown.
The stock rallied 7% to $170.33 Friday on the news, marking the biggest one-day increase since July 31, 2020, which followed another blockbuster quarter. Profit also beat projections, and the company predicted that sales would grow by a double-digit percentage in the March quarter. Analysts had predicted $119.1 billion on average. Sales climbed 11% to a record $123.9 billion in the fiscal first quarter, the company said Thursday. shares gained the most since 2020 after quarterly results sailed past Wall Street estimates, marking a victory against a supply-chain crunch fueled by the pandemic and chip shortages. Apple Posts Highest-Ever Quarterly Earnings in Sign It Tamed Supply Crisis These builds are now available for people who are part of Apple's beta program. The company had also released iOS 15.4 and iPadOS 15.4 for developers yesterday.
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