Apple reported fourth-quarter 2021 revenues that were nearly two and a half times bigger than Microsoft’s. The firm earned a net income of $34.6 billion on record revenues of $124 billion in the quarter ending December 31.
“This quarter’s record results were made possible by our most innovative lineup of products and services ever,” Apple CEO Tim Cook said, before presumably cackling like a Bond villain. “We are gratified to see the response from customers around the world at a time when staying connected has never been more important.”
The iPhone was once again Apple’s biggest business, and by far, with $71.6 billion in revenues, up 9 percent year-over-year (YOY). So the iPhone now represents 58 percent of all Apple revenues. (And by comparison, Microsoft earned fewer revenues, $51.7 billion, in the same period than did just the iPhone.)
Services—Apple’s most profitable segment–was the second-largest of the firm’s business in the quarter, with revenues of $19.5 billion, up 24 percent YOY. The firm said it had 785 million paying subscribers globally across all services, up 27 percent year-over-year; but that figure includes Apple and third-party services, including subscriptions sold through the App Store.
The firm’s Wearables, Home, and Accessories business contributed another $14.7 billion in revenues, up 13.3 YOY. And the Mac delivered $10.85 billion in revenues, up 25 percent. Oddly, iPad revenues fell by 14 percent to $7.2 billion; the business earned $8.7 billion the year-ago quarter.
In a post-earnings conference call, Mr. Cook said that Apple’s supply chain issues were improving overall, but the iPad shortfall is partially attributed to Apple prioritizing other devices.