How Apple Thrived in Profits Despite Inflation, Economic Crisis in 3rd Quarter

For the first two quarters in 2022, Apple, the leading giant in the technology industry recorded some decrease in sales, which resulted in the less profit anticipated by the company. 

However, Apples 3rd Quarter reports shows a massive increase in profits.

How Apple Thrived in Profits Despite Inflation, Economic Crisis in 3rd Quarter

iPhone is Apple’s surest source of revenue by products. America is the largest revenue generator in its geographic regions. Despite the inflation pressures and manufacturing hassles that have affected most technological companies, Apple, on the other hand, has made quite an enormous profit over the past few months though the percentage profit has dropped compared to the first and second quarters.

China made efforts to combat Covid-19 which led to shutdowns of factories halting the production of iPad, also damaging retail sales across China. Apple cut back on the fallout from China because of its strategic transition in recent years from selling more devices to selling more software and services.

Combined sales of iPhones, iPads, and Macs declined, but the company generated about $19.6 billion (12% increase in sales) in the recent quarter from sales of apps, Apple Music, and other Apple subscriptions $83 billion in revenue. Apple felt the impact of a slowing economy, but ABC News reported how Apple's $83 billion revenue for the 3rd quarter challenged the predictions and analysis from Wall Street.

According to statistics from Macromors, below is the breakdown of Apple's 3rd Quarter revenue in 2022.

iPhone: $40.6 billion, up from $39.5 billion the year ago.

iPad: $7.2 billion, down from $7.3 billion the year ago.

Mac: $7.3 billion, down from $8.2 billion the year ago.

Wearables, Home, and Accessories: $8.0B billion, down from $8.7 billion the year ago.

Services: $19.6B, up from $17.4B in year-ago

The slowing economy has tested and will test Apple's decade of growth. It managed to sail through the Great Recession behind the introduction of the iPhone, which would become the best-selling technological product in history.

And has shifted in recent years from revolutionary innovations in its products to incremental improvements, leading analysts and investors to doubt whether customers will put off buying new devices in these weaker financial states.

Apple pins its hope on the iPhone for about half its gross sales. It has expanded its customer base in recent years by releasing about seven different models ranging in price from $429 to $1700. 

The premium prices depict that Apple's customers are a greater extent, affluent than the average smartphone buyer. According to Consumer Intelligence Research Partners and some tech research firms, about a third of these Apple product users earn less than $50000 in a year. The gross margin for the quarter was 43.3 percent said Apple CFO, Luca Maestri. 

Written By;

Linda  Esinam Amegatsey

Edited By:

Arthur Kwame Philip

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