For Q4 2021 quarter ending on September 25, Apple saw a revenue record of $83.4 billion with 29% Y-o-Y growth. Cupertino tech giant reported $366 billion in revenue for this fiscal year with 33% annual growth. And what makes the company’s strong quarter more impressive is that Apple achieved more than 20% growth across all product categories with a $6 billion hit because of supply constraints.
Since 2020, a global chip shortage is affecting several industries. Initially, it was reported that Apple would not be impacted by the silicon shortage which was adversely impacting everyone else because the company orders its components in advance. But COVID-19 related lockdowns and components shortage created supply constraints for the Cupertino tech giant as well.
Strong demand for Apple’s products and services propelled it to overcome a $6 billion loss due to supply constraints
At the earnings call of Q4 2021, Apple’s CEO Tim Cook and CFO Luca Maestri threw color on the estimated loss the company faced because of supply constraints. Mr. Cook said that “Apple is reporting another very strong quarter” because of very robust demand, despite larger than expected supply constraints. The company estimates a $6 billion revenue impact of those constraints.
We estimate these constraints had around a $6 billion revenue dollar impact driven primarily by industry-wide silicon shortages and COVID-related manufacturing disruptions. Even so, we set an all-time record for Mac and quarterly records for iPhone, iPad, Wearables, Home and Accessories representing 30% year-over-year growth in products.
Our Services business performed better than we expected, where we hit an all-time record of $18.3 billion and grew 26% year-over-year. And we set quarterly records in every geographic segment with strong double-digit growth across the board. During fiscal 2021, we earned nearly one-third of our revenue from emerging markets and doubled our business in India and Vietnam.
Mr. Maestri further elaborated that in spite of experiencing larger-than-expected supply constraints, the company saw double-digit growth in each geography segment with a record September 2021 quarter for products and services.
On the product side, revenue was $65.1 billion, up 30% over a year ago as we experienced better-than-expected demand for our products despite supply constraints that we estimated at around $6 billion. We grew in each of our product categories with an all-time record for Mac and September quarter records for iPhone, for iPad and for Wearables, Home and Accessories. This level of sales performance, combined with the unmatched loyalty of our customers and the strength of our ecosystem, drove our installed base of active devices to a new all-time record.
Read More:
- Apple Services saw an $18.3 billion all-time revenue record with 26% growth in Q4, 2021
- iPhone revenue set September quarter record of $38.9 billion with 47% growth in Q4, 2021
- M1 chip drove iPad and Mac record revenue in Q4 2021, despite supply constraints
- Apple expects more than $6 billion supply constraint impact in December quarter
