Apple’s performance in Q2 fiscal 2022

Apple’s performance has been great in both the quarters of 2022. The results were particularly amazing during the first quarter of 2022 and the company experienced growth in the second quarter also compared to the same quarter of the previous year.

In the second quarter of 2022, the company experienced 9% growth in net sales compared to the same period last year. Its total net revenues in the second quarter of fiscal 2022 reached $97.3 billion compared to $89.6 billion in the same quarter of the previous year. Sales grew across all product categories except iPad. During the first quarter of 2022 also, sales of iPad had remained lower than the first quarter of 2021.

2021 had remained an amazing year financially for Apple. Its net sales had grown by more than $90 billion in 2021 compared to 2020. Again in 2022, Apple is set to enjoy signficant growth compared to the previous year. Over the first two quarters of 2022, Apple has generated more than $20 billion higher in net sales compared to the same period of the previous year.

Apple net sales in Q2 2022 and H1 2022:

Apple’s net sales were 9% higher in 2022 q2 compared to q2 2021. The company generated $97,278 million in total net sales during the second quarter of 2022. Its net sales in the second quarter of 2021 were $89,584 million. Apple’s sales of services have increased consistently over both the first and second quarters in 2022 compared to the same period of the previous year.

Apple’s sales of products increased to $77,457 million in 2022 q2, compared to $72,683 million in q2 of 2021. Its services revenue increased to $19,821 million in 2022 q2 compared to $16,901 million in 2021 q2.

The following table shows Apple's net sales of products and services for the second quarter of 2021 and 2022. Amounts are in millions.

 Products ServicesTotal
Q2 2022$77,457$19,821$97,278 
Q2 2021$72,683$16,901 $89,584 

Over the first half of fiscal 2022, the total net sales of the company were $221,223 million compared to $201,023 million during the same period in the last year. Its product net sales were $181,886 million in the first half of 2022, compared to $168,361 million in H1 2021. Apple net revenue from services in the first half of 2022 was $39,337 million compared to $32,662 million in the first half of 2021.

Apple’s net sales of iPhone reached $50,570 million in the second quarter of 2022 compared to $47,938 million in the same period in the previous year. iPhone sales grew 5% in q2 2022 compared to q2 2021. iPhone accounted for around 52% of the company’s net sales in the second quarter of 2022 compared to 53.5% in the same period of last year.

The following table shows the net sales of Apple by product category for the second quarter of 2021 and 2022. Amounts are in millions.

CategoryQ2 2022Q2 2021
iPhone$50,570$47,938
Mac$10,435$9,102
iPad$7,646$7,807
Wearables, Home and Accessories$8,806$7,836
Services$19,821$16,901
Total$97,278$89,584

Mac sales grew 15% in q2 2022 compared to q2 2021. The company generated $10,435 million in net sales from Mac in q2 2022 compared to $9,102 million in q2 2021. Total sales of Mac in the first half of 2022 reached $21,287 million compared to $17,777 million in the first half of 2021 (20% growth).

Apple’s sales of iPad remained $7,646 million in the second quarter of 2022 compared to $7,807 million in the second quarter of 2021. iPad sales were around 2% lower in q2 2022, compared to 2021 q2. In the first half of 2022 iPad sales were 8% lower compared to the same period in the previous year. Apple generated total $14,894 million from the sales of iPad in the first half of 2022 compared to $16,242 million in the first half of 2021.

Apple sales of products in the wearables, home and accessories category increased 12% in the second quarter of 2022 compared to the same period of the previous year. Apple generated $ 8,806 million from the sales of wearables in the second quarter of 2022 compared to $7,836 million in the second quarter of 2021. Over the first half of 2022, the company enjoyed 13% growth in its sales of wearables compared to the same period in the previous year.  

Services revenue of Apple increased 17% in the first quarter of 2022 and 20% in the first half of 2022 compared to the same period of the previous year. Apple generated $19,821 million from services in the first quarter of 2022 compared to $16,901 million in the second quarter of 2021. Over the first half of 2022, the company generated $39,337 million in the first half of 2022 compared to $32,662 million in the first half of 2021 from services. The increase was mainly driven by growth in the net sales of advertising, app store, and cloud services.

Apple geographical sales in the second quarter of 2022:

Americas are the largest segment of Apple geographically. Apple saw the highest improvement in its net sales from Americas compared to all other market regions in the second quarter of 2022 compared to the same period in the previous year. Its sales declined in the rest of Asia Pacific region and remained flat in Japan. Europe experienced a 5% increase and China 3% in net sales in Q2 2022, compared to q2 2021.

The following table shows the geographical revenues of Apple for the second quarter of 2021 and 2022. Amounts are in millions.

RegionQ2 2022Q2 2021
Americas$40,882$34,306
Europe$23,287$22,264
Greater China$18,343$17,728
Japan$7,724$7,742
Rest of Asia Pacific$7,042$7,544
Total$97,278$89,584

In the second quarter of 2022, the company generated $40,882 million from Americas in net sales compared to $34,306 million in the second quarter of 2021. Net sales in America grew by 19% in q2 2022 compared to the same period last year. Apart from it, the other regions experienced 5% or less growth for the same period. Over the first half of 2022, Apple’s net sales in the Americas grew by 15% compared to the same period of the previous year. Apple generated $92,378 million in net sales in the first half of 2022 compared to $80,616 million in the same period last year.

Apple’s net sales in Europe grew by 5% rising to $23,287 million in q2 2022, compared to $22,264 million in q2 2021. Total net sales of Apple in Europe in the first half of 2022 grew to $53,036 million compared to $49,570 million in q2 2021.

Apple net sales in Greater China remained $18,343 million in q1 2022 compared to $17,728 million in q2 2021. Over the first half of 2022, Apple net sales in China reached $44,126 million compared to $39,041 million in the same period of the previous year.

During the second quarter of 2022, Apple sales remained flat in Japan compared to the prior year. Apple’s net sales in Japan remained $7,724 million in Japan in q2 2022 compared to $7,742 million in q2 2021. Over the first half of 2022, Apple sales in Japan remained 7% lower compared to the prior year. Its net sales in H1 2022 were $14,831 million in Japan compared to $16,027 million in H1 2021.

Apple experienced a decline of 7% in its net sales in q2 2022 compared to q2 2021. Its net sales in the rest of Asia pacific reached $7,042 million in q2 2022 compared to $7,544 million in q2 2021. Over the first half of 2022, Apple’s net sales in this region increased 7% compared to the same period in the last year. The company generated $16,852 million in net sales from the rest of Asia Pacific compared to $15,769 million in the first half of 2021.

Apple Gross Margin and Net Income in q2 2022 and H1 2022:

The following table shows the product and services gross margin of Apple for the second quarter of 2021 and 2022. Amounts are in millions.

 Q2 2022Q2 2021
Product Gross margin$28,167$26,236
Services gross margin$14,392$11,843
Total gross margin$42,559$38,079

Apple’s gross margin improved 11.7% in q2 2022 compared to q2 2021. Its gross margin reached $42,559 million in q2 2022 compared to $38,079 in q2 2021. In the first half of 2022, Apple’s gross margin remained $96,802 million compared to $82,407 million in H1 2021.

Apple’s product gross margin was $28,167 million in q2 2022 compared to $26,236 million in q2 2021. Its service gross margin in q2 2022 increased to $14,392 million compared to $11,843 million in q2 2021. Higher product volume and a different product mix led to an increase in product gross margin during the second quarter and first half of 2022 compared to the same period over the previous year.

Product gross margin of Apple in H1 2022 increased to $68,287 million compared to $59,784 million in H1 2021.

Apple’s service gross margin in the first half of 2022 was $28,515 million compared to $22,623 million in the first half of 2021.

The following table shows the net income of Apple for the second quarter of 2021 and 2022. Amounts are in millions.

 Q2 2022Q2 2021
Net Income$25,010$23,630

Apple’s net income in q2 2022 was $25,010 million compared to $23,630 million in second quarter of 2021. Its net income grew by around 5.8% in the second quarter of 2022 compared to the same period last year. Over the first half of 2022, Apple’s net income was $59,640 million compared to $52,385 million in 2021.

Earnings per share (EPS diluted) increased to $1.52 in the second quarter of 2022 compared to $1.40 in the same period previous year. Apple’s EPS for the first half of 2022 was $3.62 compared to $3.08 in H1 2021.

Apple Operating Expenses q1 2022 and H1 2022:

The following tables shows Apple's operating expenses including R&D expenses and S,G&A expenses for the second quarter of 2021 and 2022. Amounts are in millions. 

 Q2 2022Q2 2021
R&D expenses$6,387$5,262
S,G&A expenses$6,193$5,314
Total operating expenses$12,580$10,576

Apple’s operating expenses increased 18.9% in q2 2022 compared to compared to q2 2021. Its operating expenses including R&D expenses and S,G&A expenses increased to $12,580 million in the second quarter of 2022 compared to $10,576 million in q2 2021. Over the first half of 2022, Apple’s operating expenses increased to $25,335 million compared to $21,370 million in the same period last year.

Apple spent $6,387 million on research and development in q2 2022 compared to $5,262 million in the same period last year. Its R&D expenses in q2 2022 increased 21% compared to q2 2021. During the first half of 2022 Apple spent $12,693 million on research and development compared to $10,425 million in the same period last year.

Apple’s selling, general and administrative expenses increased 16.5% in q2 2022 compared to the previous year. Its S,G&A expenses remained $6,193 million in q2 2022 compared to $5,314 million in q2 2021.  S,G&A expenses over the first half of 2022 remained $12,642 million compared to $10,945 million in the same period last year.

The company’s total cost of sales was $54,719 million in q2 2022 compared to $51,505 million in q2 2021. Its cost of sales for the first half of 2022 remained $124,421 million compared to $118,616 million in H1 2021.

Apple had a highly profitable second quarter in 2022. While its net revenues and net income were lower in the second quarter of 2022 compared to the first quarter, its performance has been better than 2021, which was the best year in its history. Again, Apple is all set to repeat the amazing feat in 2022.