AppleInsider is supported by its audience and may earn commissions as an Amazon Associate and Affiliate Partner on eligible purchases. These affiliate partnerships do not affect our edited content.
With Apple’s June 28 earnings approaching, the company has already warned of up to $ 8 billion in revenue impacts from a variety of factors. Here’s what to expect from iPhone makers in the third quarter of 2022:
The company plans to report its third-quarter performance, which is equivalent to the second-quarter, on July 28, before calling analysts. Apple CEO Tim Cook and CFO Luca Maestri add color to the results and expectations for the future.
As was often the case during the pandemic, Apple did not provide formal revenue guidance for the June quarter in its previous earnings report. However, Apple has warned that supply constraints and a strict blockade of Covid-19 in China could hurt revenues of $ 4 to $ 8 billion.
In 2022, China’s zero-tolerance policy resulted in multiple blockades and factory closures across Apple’s supply chain. Apple has compensated for some blockades, but Cupertino still expects them to have a significant impact on its June quarter earnings.
Apple’s supply situation was fluid during the pandemic, and past constraints contributed to revenues of approximately $ 6 billion in the last quarter of 2021. During the quarter, Apple missed Wall Street expectations.
Analysts expect Apple to report approximately $ 82 billion in revenue and $ 1.16 per share in the June quarter.
Apple didn’t provide revenue guidance, but said it expects a gross margin of 41.5% to 42.5% and operating expenses of $ 11.1 billion to $ 11.3 billion.
Apple’s revenue and gross profit through the second quarter of 2022.
Despite hardware challenges, Apple said it expects the entire business and individual segments such as services to continue double-digit growth in the June quarter.
Apple also announced new MacBook Air and MacBook Pro models with M2 chips during the quarter, but only the latter device shipped in the meantime. However, given that the MacBook Pro debuted at the end of the quarter, it won’t have a significant impact on Mac shipments.
Many analysts, such as Morgan Stanley’s Katy Huberty, are optimistic that Apple will outperform in the June quarter, despite continued macro and supply constraints.
The third quarter of 2022 compared to the third quarter of 2021
In the June quarter of the previous year, Apple achieved strong growth across its product segment, reporting record $ 81.4 billion in revenue.
Like this June quarter, the third quarter of 2021 was the full first quarter of products such as the M1 iPad Pro, the updated Apple TV 4K, and AirTag tracking accessories. Given the high prices and potentially stagnant growth for Apple tablets, the company’s spring hardware could grow more than in the third quarter of 2022.
However, Apple wasn’t as restricted in supply as it was in the year-ago quarter. Covid’s blockade in China has had a huge impact on Apple’s supply chain, with a $ 4-8 billion revenue blow not a trivial headwind.