Event: Apple released the 22fq1 financial report on January 28. The 22fq1 revenue reached a new high of $123.95 billion, an increase of 11.2% and 48.7% respectively; The net profit was 34.63 billion US dollars, an increase of 20.2% and a ring increase of 68.5%.
Multiple products set a new record in revenue, and the shortage of 22fq2 supply chain is expected to be alleviated:
By product, in addition to the decline in iPad revenue due to the shortage of chips, iPhone, MAC, wearable devices and services all set new records. IPhone revenue was $71.63 billion (YoY + 9.2%), mainly due to the strong demand of 5g users met by iphone13; Mac revenue of US $10.85 billion (YoY + 25.1%) comes from the upgrading and renewal of M1 chip; The revenue of service business was US $19.52 billion (YoY + 23.8%). By the end of the 21st century, Apple had more than 1.8 billion active devices and more than 785 million paid subscription accounts. In terms of subregions, the revenue of Greater China is US $25.783 billion, with the most significant growth rate of 21%. Apple’s high-end computers continue to grab share.
22fq2 Apple’s forward-looking guidance: 1) supply chain shortage is expected to be alleviated; 2) The year-on-year growth rate of Q2 revenue is expected to slow down due to the early release rhythm of new machines (expected to be released in September) and the impact of exchange rate; 3) Software services are expected to maintain double-digit growth.
Apple grew against the wind and continued to expand its market share: Apple released its new iphone13 Series in September 21, continuing its excellent sales performance for a year. According to IDC data, Q4 Apple’s mobile phone shipments in 2021 were 84.9 million, accounting for 23.4% of the market. The annual shipment volume was 236 million, with a year-on-year increase of 15.9% and a market share of 17.4%.
We are optimistic about Apple’s mobile phone sales performance in the past 22 years, mainly due to: 1) the shortage of supply chain is expected to ease, the supply of PMIC and display driver chips is improved, and the delivery of camera modules is expected to improve after the epidemic in Vietnam is controlled. 2) Apple has adopted a more aggressive low-cost strategy to seize market share. The starting price of the 128GB iphone13 is 5999 yuan, 800 yuan lower than the starting price of the same capacity of the iphone12 in 20 years. 3) Different from the market, we think Apple will continue to expand its share of the high-end machine market in 22 years. The reason is that although the competitive product substitution bonus has gradually dissipated, the high-end machine strategy of some domestic android in the past 22 years may shrink, and Apple’s advantage is expected to further expand.
MR is ready to lead the consumer electronics innovation cycle: at this performance meeting, Tim Cook said that he is optimistic about the huge market potential of AR and continues to invest in this field. At present, Apple has more than 14000 arkit applications in the app store, invests & acquires a number of virtual reality underlying hardware technology and content companies represented by akonia and nextvr, and reserves many related patented technologies. The company has a long-term layout in the early stage. It is expected that 22q4 will release Mr terminal hardware (to be sold in 2023). On the one hand, it is expected to promote the penetration of VR / ar from b-end applications to C-end, especially in the field of consumer social networking; On the other hand, it is expected to improve the attention and prosperity of the whole VR / AR industry, so as to promote the reform of VR / AR industry.
Investment suggestion: we are optimistic about the large-scale catalysis of Apple’s hardware products under the alleviation of material shortage, and Apple’s leading innovation in the forward-looking layout of VR / AR and smart cars, which is beneficial to the relevant targets of China’s apple industry chain. It is suggested to pay attention to: Luxshare Precision Industry Co.Ltd(002475) , Goertek Inc(002241) , sunny optics, Suzhou Dongshan Precision Manufacturing Co.Ltd(002384) , Han’S Laser Technology Industry Group Co.Ltd(002008) , Gaowei electronics, etc.
Risk tips: continuous impact of material shortage, repeated impact of epidemic situation, geopolitical risk, etc.
