Apple has reported a net loss of $34.6 billion on revenues in the range of $123.9 billion in the Q1 of its fiscal year 2022 (FY), a three-month period that ended on December 25, 2021. Apple uses the term revenue to mean net sales within its annual financial statements. Both revenue and net income increased compared to the previous quarter. Net income increased 20.4 percent, while revenue increased 11.2 percent.

Both the Products and Services businesses grew in the last period. Revenues for the Products business grew 9.1 percent compared to the same period in the year before and comprised around 84% of the company's total revenue. In terms of its products, iPhones represented 58% of revenues; Macs (9%) and iPads (6 percent), Wearables accessories, and Home (12 percent). Revenue from services grew 23.8 percent compared to the same period a year ago and accounted for around 16 percent total revenue of Apple.

Apple has rolled out a major plan to cut down its dependence on low-margin hardware products, which have a chance to slow growth, while also accelerating the expansion of its Services service, which offers better margins and provides a reliable, regular revenue stream. Apple has recently introduced several new products, such as Apple Arcade, Apple TV+, Apple News+, and Apple Card. Apple offers a variety of its services under one package known as Apple One.

The profits of Apple's services business continue to increase. Gross margin as a percent of sales was 72.4 percent in Q1 FY 2022. The gross margin for FY 2021 was 69.7 percent compared to 66.0 percent during FY 2020. It was 63.7 percent in FY 2019. Gross margin as a percent of product sales was 38.4 percent in the first quarter of FY 2022. It was 35.3 percent in FY 2021, an increase from 31.5 percent in FY 2020 and 32.2 percent in FY 2019.

Apple's Business Segments

Apple offers an overview of its operating and revenue in the following geographic segmentation: Americas; Europe; Japan; and the remainder of Asia Pacific. Although there is no doubt that the U.S. is still the most important market. In the quarter ended in FY 2022, the markets of China, Japan.

Americas

The Americas segment comprises the regions of North as well as South America. Revenue increased 11.2 percent in the first quarter of FY 2022 to $51.5 billion, accounting for around 42 percent of its total revenue from Apple. Operating income increased 24.1 percent in the quarter to $19.6 billion, accounting for around 39% of operating earnings across all segments.

Europe

The Europe segment comprises European countries, India, Africa, the Middle East, and Africa. Revenues grew 8.9 percent in the first quarter of FY 2022 to $29.7 billion, accounting for around 24 percent of Apple's total revenue. Operating income increased 20.4 percent to $11.5 billion, accounting for around 23% of operating earnings for all segments.

Greater China

Revenue grew 21.0 percent in the first quarter of FY 2022 to $25.8 billion, accounting for around 21 percent of Apple's total revenues. Operating income increased 31.1 percent to $11.2 billion, accounting for around 23% of total operating profit across all segments.

Japan

The segment's revenue dropped by 14.2 percent during the first quarter of the fiscal year 2022, reaching $7.1 billion. This represents around 6percent of Apple's overall sales. The operational income was down 4.4% to $3.3 billion, about 77% of the overall operating profits across all businesses.

Rest of Asia Pacific

The remainder of the Asia Pacific segment includes Australia and the Asian countries that are not part of the other reportable geographical segments. Revenues for this segment increased 19.3 percent in the quarter ended January 2022, to $9.8 billion, which is around 8 percent total revenue of Apple. Operating income increased 35.3 percent to $4.0 billion, accounting for around 8 percent of the total operating earnings across all segments.

An update to readers: the total operating income used in the breakdown of segments above, as shown in the pie chart form, is $49.7 billion in the first quarter of FY 2022. To arrive at Apple's reported lower operating earnings in the quarter of $41.5 billion, Apple makes deductions for research and development costs and other corporate expenses.