CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Blow-out Apple earnings bury supply chain fears, lift shares

By Adrian Holliday

12:32, 28 January 2022

An illuminated Apple logo shines on a store front
iPhone sales continue to support Apple in its 2022 Q1 results, helping revenues to surge again – Photo: Shutterstock

Overcoming stupendous supply chain pressure, Apple reported its best ever revenues quarter last night. Stock in Apple jumped more than 5% following the release of its fiscal 2022 first quarter results, which saw the Cupertino-based company’s revenues leap 11% to $123.9bn (£92.3bn, €111bn). 

Apple’s net profits for the last quarter of 2021 – particularly important with it being the Christmas holiday quarter – boomed 20% higher to $34.6bn. 

Still biting

Any weak spots? Not really. Sales expectations across all divisions were surpassed – apart from iPads, chafing against supply chain issues. Apple also reclaimed its number one position in China, taking 23% of the market overall, supported by strong iPhone 13 take-up.

Apple did not give guidance – the tech colossus doesn’t supply outlook any more – though there was a good measure of product colour. Sales of iPhones were 9% higher overall, hitting $71.63bn. Revenues from the company’s services unit including the App Store leapt 24% to $19.5bn.

Clearly demand for high-ticket hardware and software remains high, with little sign of iPhone sales weakness. What explains the better-than-expected numbers? 

“Apple essentially wins on how big it is,” says Anam Rahman, of – which supplies software intelligence for supply chains.

“Its [Apple’s] supply chains prioritise it because of how valuable it is. Because of the fines that Apple has [for non-fulfilment]… it ends up sucking up the majority of the capacity that’s out there,” adds Rahman.

“Below that they [the supplier] ask, ‘do I prioritise Apple or Samsung?’ And they’re choosing Apple right now and saying ‘no’ to some of their other bigger customers.”

What is your sentiment on AAPL?

Vote to see Traders sentiment!

Leading the market higher?

The level below Apple is more vulnerable because those companies are competing for fewer resources says Rahman – if you’ve Apple as a client, the long-term business is too valuable to lose, often. 

Yesterday memory chip maker Western Digital reported better-than-expected Q2 earnings but Western Digital has faced considerable supply chain headwinds; its shares are around 17% down since the start of the year and they weakened more yesterday.

Trade nation analyst David Morrison says Apple has another thumping advantage. 

“They’ve got the hardware but everything’s integrated. People trust iOS [Apple’s operating system]. It’s reliable. It’s safe and secure and it spreads across all [of its] products,” says Morrison.

He adds: “In China it’s really benefited from Huawei’s problems with sanctions from the US.” Last month Huawei reported its annual revenues had slumped by almost a third due partly to US sanctions hitting smartphone sales. 

So is Apple as bullet-proof as it appears? “The thing that could be a concern is regulation,” adds Morrison. “But if you think about Facebook, or Twitter, I just don’t think the threat of break-up that these other business have [is there].”


238.37 Price
+1.390% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.10


468.27 Price
+0.380% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.14


147.16 Price
+0.800% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.13


133.41 Price
+7.130% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.17


Microsoft reported a profits bump for the last three months of 2021 earlier this week, pumping its stock price higher. Microsoft is more software focused than Apple – Mac sales soared 25% to $10.9bn – despite a proliferation of Xbox and Surface computer products. 

Software sales, more broadly, could however weaken as the post-pandemic shift return to offices grips.

So does Apple’s strong numbers indicate that much of the recent negative big tech sentiment is over-cooked? It remains to be seen: the Nasdaq is almost 15% down since the start of the year with Apple still 12.5% lower since the beginning of January. Yet over 12 months Apple’s more than 16% up. 

Looking ahead, there is still comparatively little clarity on Apple’s position on mobility. There continues to be rumours of self-driving cars in California; car tech is thought to be happening, but project detail is sparse. The rumour mill continues.

But there’s more texture on healthcare and fitness opportunities that is likely to extend across more devices, expanding Apple’s grip on the services sector.  

Underwhelmed by 5G

Earlier this month Loop Capital Markets analyst Ananda Baruah reiterated a buy rating on Apple, sticking a $210 target price on the stock, accurately predicting that Apple iPhone sales would better Wall Street estimates. 

Other analysts have said that Apple is also well-placed to take advantage of 5G adoption in China and the US – though so far the adoption of 5G has yet to take off at scale. 

Apple’s diluted earnings per share of $2.10 also beat the $1.89 consensus estimate from analysts. However, CFO Luca Maestri did tell the Financial Times that supply chain issues cost Apple “more than $6bn” in revenues.

“These record operating results allowed us to return nearly $27bn to our shareholders during the quarter, as we maintain our target of reaching a net cash neutral position over time,” said Maestri in a statement.

Apple declared a cash dividend of $0.22 per share of the company’s common stock, which will be payable 10 February. 

In pre-market trade, Apple’s stock price stood at $164.93, up nearly 3.6% on yesterday’s closing price of $159.22.

Markets in this article

Apple Inc (Extended Hours)
191.24 USD
1.28 +0.670%
Microsoft Corp (Extended Hours)
375.52 USD
-3.44 -0.910%
Microsoft Corp (Extended Hours)
375.52 USD
-3.44 -0.910%
US Tech 100
15994.9 USD
66.5 +0.420%
US Tech 100
15994.9 USD
66.5 +0.420%

Related topics

Rate this article

Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading