Apple (NASDAQ: AAPL) announced 2022 Q1 financial results on January 27th, 2022. According to the announcement, total net sales, operating income and net income were up 11%, 24% and 20%, respectively (YoY, 3 months). In this regard, the sales of products were up 9% while the sales of services recorded a significant increase of up 24%. Since the opening of 5G lines, various technological innovations called DX are being promoted by streaming technologies based on large-capacity communication from cloud servers.
Apple’s current business plan is appeared to be strengthen its service segment in light of such trends. The service segment’s share among the total net sales continues to grow from 14% in 2021 Q1 to 16% in 2022 Q1. We expect this trend to continue.
Looking at sales growth by region, Great China recorded the largest growth of up 21% (YoY, 3 months). It was followed by Rest of Asia Pacific of up 19%. Only Japan recorded a year-over-year decrease in the sales. Its decrease rate was as large as -14% (YoY, 3 months).
Looking for sales by products, sales of Mac showed the highest growth of up 25%. Since November 2020, Macs have been equipped with the Apple M1 chips to dramatically improve their performance. Currently, Macs have become particularly popular among creators and others. The dramatic increase in Mac sales these days is believed to be the result of product development efforts while taking into account user needs.
On the other hand, the iPad sales were down 14%. However, they seems to be still popular among some users such as creators.
Watanabe & Brothers’ Investment will continue to invest in Apple from a long-term perspective.
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