Analysts expect Apple to report strong earnings for Q1, 2022, despite supply constraints

Apple is scheduled to publish its Q1, 2022 earnings report on January 27, 2022, and ahead of the financial results, analysts expect the tech giant to report strong sales revenue despite supply constraints and the resurgence of the COVID-19 Omicron variant.

Apple will publish the financial results for the first quarter of 2022 on Jan 27 at 1:30 p.m. Pacific Time and 4:30 p.m. Eastern Time which will be followed by an earnings call, at 2:00 p.m. Pacific time and 5:00 p.m. Eastern time. 

Apple

Driven by strong iPhone 13 sales in China and growth in Mac shipments, analysts expect strong earnings for Apple’s Q1, 2022 

For the quarter ending in December 2021, the tech giant will be reporting sales revenue for the new iPhone 13 series, 2021 MacBook Pro models with M1 Pro and M1 Max chips, Apple Watch Series 7, AirPods (3rd generation), iPad mini (6th generation), iPad (9th generation), HomePod mini in new color options, Apple Music Voice Plan and more. 

Reuters latest report compiles the earnings expectations of Apple first quarter of 2022 by leading tech analysts. And Many believe that Apple was “buoyed” by high iPhone 13 demand, especially in China, and an increase in Mac shipments during a volatile market condition. 

Investment firm Wedbush Securities forecasts record iPhone sales of more than 40 million units during the holiday period from Black Friday to Christmas. Morgan Stanley estimates total holiday quarter iPhone shipments at 83 million, representing a 4% increase from the previous year.

Wall Street analysts expect Apple to post about $118.7 billion in revenue, representing 6.48% year-over-year growth, and quarterly earnings per share of $1.89, according to Eikon data as of Tuesday.

“We expect Apple to reach its highest market share in China since Apple entered the market in 2008,” said analyst Nicole Peng of Canalys.

Apple and RED

According to Neil Shah of Counterpoint Research, the tech giant navigated the global chip crisis efficiently to maintain steady supply and demand which will result in another record quarter in Q1, 2022. 

“Since Apple has many customized components going into the iPhones, Macs, Apple Watch and others and the scale (volume and price) at which it procures, Apple has been able to lock-in suppliers’ capacities to timely produce those parts with lesser delays.”

Shah added that Apple is seeing the highest demand for iPhones since the 2015 “supercycle.”

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Addicted to social media and in love with iPhone, started blogging as a hobby. And now it's my passion for every day is a new learning experience. Hopefully, manufacturers will continue to use innovative solutions and we will keep on letting you know about them.

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