AAPL Q4 2021 Earnings

Call Details

• Call Title: Apple Inc. Q4 2021 Earnings Call
• Date: October 28, 2021 at 8:00 PM UTC
• Management Team:
  • Tejas Gala (Director of Investor Relations and Corporate Finance)
  • Tim Cook (Chief Executive Officer)
  • Luca Maestri (Chief Financial Officer)

Call Summary

Financial Performance

• Apple reported $83.4 billion in September quarter revenue, representing a 29% increase year-over-year and a September quarter record.
• This fiscal year Apple reported $366 billion in revenue, representing 33% annual growth versus the prior year.
• Products revenue was $65.1 billion in the quarter, which was up 30% year-over-year and set records across product categories.
• Services revenue reached an all-time record of $18.3 billion in the quarter, up 26% year-over-year and achieving records across services categories.
• Reported net income was $20.6 billion and diluted earnings per share were $1.24 for the quarter, and both were September quarter records.
• Company gross margin was 42.2%, which declined 110 basis points sequentially, with products gross margin at 34.3% and services gross margin at 70.5%.

Guidance

• Apple did not provide a revenue range for the December quarter and stated it is not providing revenue guidance due to continued near-term uncertainty.
• The company expects December quarter gross margin to be between 41.5% and 42.5%.
• Operating expenses for the December quarter were guided to be between $12.4 billion and $12.6 billion.
• Other income and expense for the December quarter is expected to be around negative $50 million, excluding mark-to-market of minority investments.
• The company expects an estimated tax rate of about 16% for the December quarter.
• Apple expects year-over-year product revenue growth in every product category in December except iPad, which is expected to decline due to supply constraints, and expects services growth to decelerate from the September quarter but to remain strong.