Apple Q4 - Robust Mac Demand

Apple closed up 7% on Friday, a day after reporting surprisingly good numbers for the September quarter. This has been especially impressive since it came off a very high base which was fuelled by pandemic spending when people were stuck at home buying luxury items instead of experiences.

Overall revenue was up 8% to $90.1 billion, a record for the September quarter. Sales from the iPhone came ahead of expectations, showing no signs of slowing down. iPhone sales are up 9.7% year-on-year to $42.6 billion, almost half of all revenues. Net income was at a record $20.7 billion.

"Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop," said Luca Maestri, Apple's CFO. The strength of Apple's ecosystem, unmatched customer loyalty, and record sales spurred their active installed base of devices to a new all-time high.

Worldwide smartphone and PC shipments, of all brands, declined 9% and 19.5%, respectively, during the third quarter. This tells me that Apple is a lot more stable than its peers amid a host of headwinds. Mac revenues were up 25% year-on-year, grossly outpacing the downtrend, while Services were only up 5% in the same period but coming off a really high base.

In short, Apple's business is strong and demand for its products remains high across the globe, even in emerging markets. This is a theme we've only really seen in the luxury goods space. The Cupertino, Cali giant is still the same recession-resilient business we've learnt to love over the years. Apple has played its role in being the safe port in the storm.