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Apple’s Q1 2022 gross margin hits five year high of 44%

Apple Inc (NASDAQ: AAPL)’s 2022 first fiscal quarter results are the best the firm has recorded in half a decade. According to a banklesstimes.com data presentation, Apple‘s gross margin was 43.8%, buoyed by an 11% jump in its previous quarter’s revenues. That was a 4% increase from its Q4 2022 figures of 39.8%.

The tech giant announced revenues of $123.9B for the quarter. Additionally, the firm’s net profit for the quarter was $34.6B. In contrast, its Q4 2021 revenues and net profits stood at $111.4B and $28.8B, respectively.

What's behind Apple's impressive returns?

The company attributes its impressive performance to several factors. Chief among them was the all-time revenue record that its iPhone unit set. The unit earned Apple $71.63B, having grown 9% in YOY terms.

Additionally, it made impressive gains in its Mac sales. Apple's data indicates that it made $10.85B from that unit's sales. Those grew by 25% in YOY terms, bolstered by robust demand for the MacBook pro.

The wearables, home and accessories, and Services units also registered significant gains contributing $14.7B and $19.5B in sales. Apple's only blemish was a 14% YOY decline in iPad sales to stand at $7.25B.

Again Apple has been building up strategic partnerships with leading firms. Its enterprise customers have shown a growing preference for M1-powered Macs. Shopify, for instance, is upgrading all of its global workforce to the product. Deloitte is also expanding its Mac Employee Choice program.

Towards a better world

Apple's chief executive has spoken of his pride in the achievement. He applauded the company's staff for the innovative line of products that made the feat attainable. He further noted that the performance was better than they had anticipated.

Moreover, Cook appreciated Apple's customers for their response to its products. Besides the record-breaking revenues, the firm also registered the best ever customer satisfaction scores of 98%.

Author

Jacob Wolinsky

Jacob Wolinsky is the founder of ValueWalk, a popular investment site. Prior to founding ValueWalk, Jacob worked as an equity analyst for value research firm and as a freelance writer. He lives in Passaic New Jersey with his wife and four children.

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