Apple brought in a record-breaking $123.9 billion in revenue, despite supply constraints

It’s been a great quarter for Apple. The company just dropped its earnings report for Q1, 2022 (which for Apple ended December 25, 2021), and it broke revenue records across the board. It also reported a net income of $34.63 billion, with gross margins increasing to approximately 43.8 percent.

Not only did quarterly revenue hit an all-time high of $123.9 billion, Apple also brought in more money selling iPhones, Macs and wearables than ever before. This time last year, the company reported a revenue of $111 billion, which itself was a new record at the time. Last quarter, too, it made all kinds of money selling Macs, even without the release of new Macbooks.

Apple’s revenue from iPhones ($71.6 billion) this year, despite global supply constraints, is a notable jump from last year ($65.6 billion). Driven by the transition to its own M1 silicon chips, Mac revenues were up more than $2 billion compared to the year prior, hitting a record $10.9 billion. Chief financial officer Luca Maestri said on the company’s earnings call that the last six quarters were “the best six quarters ever for Mac,” and that M1-powered devices made up the vast majority of sales thanks to a “record number of upgraders.”

“Wearables, Home and Accessories” — which includes Apple Watch, AirPods and HomePods — added another record-breaking $14.7 billion to the revenue sheet. Apple’s services also contributed to its overall revenue, with products like TV+ and Fitness+ raking in a total of $19.5 billion — an increase of 24 percent from last year. Maestri noted that paid subscriptions continue to increase, with recent developments in Fitness+, Arcade and Apple Music contributing to the growth.

But not all products broke records this year. Net sales of iPads brought in $7.2 billion in Q1 2021, which is a 14 percent decrease year-over-year “due to very significant supply constraints,” Maestri said. 

Investors will be happy to know that Apple’s board of directors have declared “a cash dividend of 22 cents per share of common stock, payable on February 10th 2022.” With supply chain issues and inflationary pressures impacting every business, Apple’s results this quarter are surprisingly strong. CEO Tim Cook said in the Q&A section of the earnings call that the company will “have less constraints than we had in the December quarter,” which could mean its streak of wins might not be over.