Apple performance in Q1 2022
Apple’s (NASDAQ: AAPL) financial performance in 2022 has been better compared to the previous year. The company experienced significant growth in its net revenues in 2021 Q1 compared to the same period in the previous year.
Its net sales for the first quarter remained 11% higher than the same quarter last year. The net sales of Apple grew across all product categories excluding iPad.
2021 was an amazing year for Apple when the company experienced solid growth in net revenues. Its net revenues remained the highest in its history having grown by 33% compared to the previous year. The company generated $365.8 billion in net revenues in 2021 compared to $274.5 billion in 2020. iPhone sales alone brought around $192 billion in net sales for the company in 2021.
Apple’s performance is again on solid track in 2022. The first quarter brought excellent results for the company.
Apple’s net sales in 2022 Q1.
Apple generated solid results in Q1 of 2022. The net revenues of the company jumped to $123.95 billion in 2022 Q1 compared to $111.44 billion in 2021 Q1. The total net sales of the company grew by 11% of $12.5 billion in the first quarter of 2022 compared to the first quarter of the previous year. Net sales of Apple products reached $104,429 million in q1 2022 compared to $95,678 million in q1 2021. Its net sales of services reached $19,516 million in q1 2022 compared to $15,761 million in q1 of 2021.
The following table shows Apple's net sales by product category in the first quarters of 2021 and 2022: (Amounts are in millions).
| Category | Q1 2022 | Q1 2021 |
| iPhone | $71,628 | $65,597 |
| Mac | $10,852 | $8,675 |
| iPad | $7,248 | $8,435 |
| Wearables, home and accessories | $14,701 | $12,971 |
| Services | $19,516 | $15,761 |
| Total net sales | $123,945 | $111,439 |
The company released some new products in the first quarter of 2022:
- MacBook Pro , available in 14- and 16-inch models and powered by an Apple M1 Pro chip or an Apple M1 Max chip;
- Third generation of AirPods; and
- Apple Watch Series 7.
The company experienced growth in sales across all product categories except iPads. iPhone sales of the company grew by 9% in the first quarter of 2022 compared to the same period in the previous year. Mac sales of the company grew by 25%, and services revenue also grew by 24%. iPhone sales accounted for around 58% of the company’s net revenues in the first quarter of 2022.
The net sales of iPhone in the first quarter of 2022 reached $71,628 million compared to $65,597 million in the first quarter of 2021. iPhone sales increased 9% in Q1 2022 compared to the same quarter of the previous year.
Mac sales increased 25% in the first quarter of 2022 compared to the same quarter of the prior year. Apple generated $10,852 million from the sales of Mac in Q1 2022 compared to $8,675 million in the first quarter of 2021.
iPad net sales declined 14% in Q1 2022 compared to the same quarter of the last year. Apple’s net sales of iPad were $7,248 million compared to $8,435 million in the same quarter of the prior year.
Apple’s revenues from the sales of wearables, home and accessories in the first quarter of 2022 were $14,701 million compared to $12,971 million in same quarter of the previous year. Sales in the wearable category increased 13% in Q1 2022 compared to the same quarter of 2021.
The net sales of services increased by 24% in the first quarter of 2022 compared to the same period of the previous year. Apple’s sales of services reached $19,516 million in the first quarter of 2022, compared to $15,761 million in the same quarter of the previous year.
The total net sales of the company in the first quarter of 2022 increased 11% compared to the same quarter of the previous year. Apple generated $123,945 million in net sales in the first quarter of 2022 compared to $111,439 million in the same quarter of the previous year.
Apple geographical sales in the first quarter of 2022:
Apple’s business is divided into five major geographical segments – Americas, Europe, Greater China, Japan, Rest of Asia Pacific. The company experienced growth in net sales across all major geographical markets excluding Japan. Sales increased the most in China having grown by 21% in q1 2022 compared to the same quarter of the previous year. Operating income from the Americas reached $19.6 billion in q1 2022 compared to $15.8 billion in q1 2021.
The following table shows the geographical net sales of Apple for the first quarter of 2021 and 2022. (Amounts are in millions).
| Geographical segment | Q1 2022 | Q1 2021 |
| Americas | $51,496 | $46,310 |
| Europe | $29,749 | $27,306 |
| Greater China | $25,783 | $21,313 |
| Japan | $7,107 | $8,285 |
| Rest of Asia Pacific | $9,810 | $8,225 |
| Net sales | $123,945 | $111,439 |
Apple’s largest geographical market, Americas accounted for around 41.5% of the company’s net revenues in the first quarter of 2022. Apple generated $51,496 million from the Americas in the first quarter of 2022 compared to $46,310 million in the first quarter of 2021. Its net sales in the Americas increased by 11% compared to the last year.
Europe is the second largest geographical market of Apple based on net sales. In the first quarter of 2022, Apple generated $29,749 million in net sales from Europe compared to $27,306 million in the first quarter of 2021. Its net sales in Europe increased 9% in q1 2022 compared to the same quarter of the previous year.
As a leading geographical market for Apple products, Greater China saw the highest percentage growth in total net sales in Q1 2022 compared to the first quarter of 2021. Apple’s net sales in Greater China reached $25,783 million in Q1 2022 compared to $21,313 million in Q1 2021.
Japan was the single market region where Apple sales declined in the q1 of 2022 compared to q1 of 2021. Apple’s net sales in Japan remained $7,107 million in q1 of 2022 compared to $8,285 in q1 2021. The company experienced a decline of 14% in its net sales in the first quarter of 2022 in Japan compared to the same quarter of the previous year. While the sales of iPhones and iPads were lower in Japan in 2022 q1, the sales of services were higher compared to the first quarter of 2021.
Apple sales in the rest of Asia Pacific increased 19% in 2022 q1, compared to the same quarter of the previous year. Total net sales of the company in this region remained $9,810 million in the first quarter of 2022 compared to $8,225 million in the same quarter of the previous year.
Apple Gross Margin and Net Income in Q1 2022:
(Amounts are in millions).
| Q1 2022 | Q1 2021 | |
| Gross Margin | $54,243 | $44,328 |
| Net Income | $34,630 | $28,755 |
Gross Margin:
Apple’s total gross margin in the first quarter of 2022 increased to $54,243 million compared to $44,328 million in q1 of 2021. Product gross margin of the company increased to $40,120 million in the first quarter of 2022 compared to $33,548 in the first quarter of 2021. Its services gross margin increased to $14,123 million in the first quarter of 2022 compared to $10,780 million in the first quarter of 2021.
Apple’s net income in the first quarter of 2022:
Apple’s net income increased by around 20.4% in the first quarter of 2022 compared to the same quarter of the last year. The company generated $34,630 million in the first quarter of 2022 compared to $28,755 million in the same quarter of the previous year.
Its earnings per share (diluted) increased to $2.10 in Q1 2022 compared to $1.68 in the first quarter of the previous year.
The total operating income of the company increased to $41.5 billion in q1 2022, compared to $33.5 billion in q1 2021.
Apple operating expenses in q1 2022:
(Amounts are in millions).
| Q1 2022 | Q1 2021 | |
| R&D expenses | $6,306 | $5,163 |
| S,G&A expenses | $6,449 | $5,631 |
| Total operating expenses | $12,755 | $10,794 |
Apple’s operating expenses in q1 2022 increased to $12,755 million compared to $10,794 million in q1 2021. Its operating expenses include the general and administrative expenses of the company and R&D expenses. Both its R&D expenses and selling, general and administrative expenses were 5% of the company’s net sales for the first quarters of 2021 and 2022.
The research and development expenses of the company increased by $1,143 million in the first quarter of 2022 compared to the first quarter of 2021. The company spent $6,306 million in the first quarter of 2022 compared to $5,163 million in the first quarter of the previous year. Apple spent 22% more on research and development in the first quarter of 2022 compared to the same quarter of the previous year.
Apple’s selling, general and administrative expenses during the first quarter of 2022 were $6,449 million compared to $5,631 million in the first quarter of 2021.
Its total operating expenses were 10% of the company’s net sales in the first quarters of 2021 and 2022. Operating expenses of the company increased 18% in the first quarter of 2022 compared to the same quarter of the previous year.
Over the past few years, Apple has experienced rapid growth in net sales and net income. The company experienced the biggest jump in 2021 when its sales grew by more than $91 billion compared to 2020. The first quarter of 2022 has again brought great results indicating that 2022 could be a more profitable year for the company compared to 2021.