‘Freight Train’ Apple Posts Record Quarterly Revenue

After Apple posted a record quarterly revenue of $124 billion on Thursday, analysts described the company as a “freight train at the moment.” CEO Tim Cook noted on the tech giant’s earnings call that inflation is a major factor as well as “Logistics, as I’ve mentioned on a previous call, is very elevated in terms of the cost of moving things around.”

CNBC reports that Apple has posted yet another stellar financial quarter, with a record quarterly revenue of $124 billion published on Thursday. The company reported sales for every product category — aside from the iPad — beating expectations. Company shares have since increased in value by 11 percent.

CCS Insight chief analysts Ben Wood commented in a recent interview with CNBC: “The interesting thing with Apple is it’s like a freight train at the moment. It’s weathered the pandemic extremely well.”

Apple noted on Thursday that it has 1.8 billion devices on the Apple network, this includes Apple products such as iPhones, iPads, Mac, Apple Watches, and the company’s HomePod home assistant speaker. “That’s an astonishing install base, which gives them tremendous momentum,” Wood said, noting that this number will likely climb past 2 billion before the end of 2022.

In an interview with CNBC on Thursday, Apple CEO Tim Cook did acknowledge that rising inflation is putting pressure on the company, stating: “We try to price our products for the value that we deliver and we are seeing inflationary pressure. I think everybody’s seeing inflationary pressure. There’s no two ways about that.”

On an earnings call, Cook went into more detail on the effect of inflation on Apple’s business, noting that shipping costs had increased. “We’re seeing inflation and it’s factored into our gross margin and opex [operating expenses] that [Apple CFO] Luca [Maestri] reviewed with you earlier,” Cook said. “Logistics, as I’ve mentioned on a previous call, is very elevated in terms of the cost of moving things around.”

Cook added that he hoped the currently increased costs would be temporary, stating: “I would hope that at least a portion of that is transitory, but the world has changed and we’ll see.”

Read more at CNBC here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address lucasnolan@protonmail.com