Over the past few years, the global shortage of computer chips has severely hit the logistics of smartphone manufacturers. From Apple to Samsung to Google and other smartphone manufacturers fear massive disruptions in the supply chains mainly because of chip shortage. Several companies in the semiconductor business are trying to diversify their manufacturing bases, focusing on India, the US, and Europe. The component shortage has been plaguing the global tech and electronics industry sectors, adversely impacting the manufacturing output and further stressing the supply chains. However, Apple has been able to effectively swim against the tide in dealing with the problem to maintain a steady supply of its flagship Apple iPhone.
Apple iPhone Holds The Center Stage
Despite the global chip shortage and other supply chain constraints that affected almost all smartphone manufacturers, Apple was the only exception. The company posted a record revenue as iPhone supply was unaffected by the crisis. Apple reported 11% sales to increase year-on-year along with the most significant quarterly revenue from October to December 2021. The performance was mind-boggling because the company could overcome the supply chain shortages with enthusiasm to prove the investor estimates wrong.
The revenue for the last quarter was $123.9 billion as both the developed and emerging markets posted revenue growth for all products except for the iPad, whose revenue dropped by 14% year-on-year.
The late September release of the iPhone 13 bolstered the growth of the iPhone that recorded solid sales. The sales figure of the smartphone alone is imposing as sales hit $71.63 billion, a sharp increase of 9% year on year. The jump from $65.6 is indeed a remarkable feat for the company. The iPhone holds the center stage during any analysis of the revenue figures.
Kudos To Apple’s Supply Chain Management
The year ended on a high note for the hardware giant, and the company could make the fans, shareholders, and investors hold a broad smile. While acknowledging the crisis due to chip shortage, Tim Cook was confident and happy about the company’s way of handling the supply chain issues, which did not pose any serious threat to the output. He appreciated the role of the company’s supply chain managers, who did an excellent job of mitigating the effects of chip shortages. As a result, there was no crisis for Apple-like many other companies hard hit by the current supply chain shortages.
It’s A Smartphone Quarter For Apple
Although Tim Cook highlighted the company’s innovative lineup of products and services as the reason for such a successful quarter, the company’s recent successes in China have contributed immensely. Apple was at the top of the market share list in China, the largest global smartphone market. It’s a grand success if you consider that Apple had to deal with big players like Oppo, Xiaomi, and Honor that followed Apple closely at the heels. The companies occupied the spots between two to five in the highest-selling smartphones in China. It is the first time in 6 years that Apple has topped the quarterly sales chart in China.
In the same way, Apply maintained its supremacy in global smartphone sales by occupying the top spot at a time when other manufacturers kept struggling to cope with the current supply chain shortages and blockages. Apple could overturn the poor performance of the previous quarter when it struggled to make its products available in certain markets.
Doing Things Differently
From the results and the optimism expressed by Tim Cook about the supply chain constraints easing out in the future, it is evident that Apple has been doing things differently. The way the company could surge ahead amid the global crisis of chip shortage speak volumes about its exceptional capabilities to change the course of events and turn the tide in its favor.
The past year has been remarkable for Apple iPhone and other hardware products except for the iPad, but the revenue growth from services has been exceptional. From 160 million paid subscriptions in 2020, the company reached the mark of 750 million paid subscribers, which points to the incredible growth story, which tells about the company’s overall strength.