Despite present inflationary pressures and poor consumer confidence, Apple managed to outperform expectations. The Group’s revenues and earnings for the third quarter ended June 25 of its FY22 were USD83.0b and USD1.20 per share, respectively, above projections of USD82.8band USD1.16 per share. MIDF reckons the strong results were ascribed to group loyalty and brand familiarity.
Apple has been able to maintain existing consumers while attracting new ones through ongoing innovation and product development, resulting in significant growth in sales for its goods.
In the present inflationary environment, having significant pricing power might be useful since the business may be able to pass on higher production and transportation expenses to its consumers. Furthermore, Apple’s diversified product selection serves a larger percentage of the market. The introduction of the M2 Mac while maintaining manufacturing of the M1 Mac, for example, helps to diversify their goods in the market more, appealing to diverse customers’ wants and financial backgrounds. Inflation and the pandemic have increased the disparity in purchasing power among customers from various financial backgrounds. The pandemic’s pent-up demand has resulted in increased splurge by higher-income households, while inflation continues to drive lower-income households to remain cautious.
Apple’s approach of offering a range of goods at various costs and specifications aids in capturing demand at various price points. This development bodes positively well for our local player, Inari, which is in the supply chain for Apple’s smartphone production.
Apple Shares are trading at $165.81 down 0.19%
