Apple's revenues reached $123.9 billion

The company's CEO, Tim Cook, said the company's supply chain challenges were improving.

The company's revenue was $123.9 billion, an 11 percent annual increase. iPhone revenue was $71.63 billion, an increase of 9 percent annually.

Services revenue was $19.52 billion, an increase of 24% annually. Other products revenue was $14.70 billion, an increase of 13 percent annually.

Mac revenue was $10.85 billion, up 25% annually. iPad revenue was $7.25 billion, down 14% annually.

Apple did not provide an official outlook estimate for the current quarter. The company also has not provided estimates since the start of the coronavirus pandemic, citing uncertainty.

The company's CEO, Tim Cook, made a forward-looking statement in an interview with CNBC. "What we expect in the March quarter is strong year-over-year revenue growth," Cook said. We expect supply constraints to be lower in the March quarter than in the December quarter.

Revenue was another strong performance by the company in its largest quarter of the year, which includes vacation sales. Each of its product lines grew year over year, with the exception of iPad sales, despite management warnings in October that supply issues could hurt the company's sales.

Cook said the company's supply issues were improving. He also said the December quarter was worse than the company's September quarter in terms of supply problems, but he expects the March quarter to improve.
Apple is beating scores in every product category except the iPad

"Our biggest problem is chip supply," Cook added. The main chips are the powerful processors at the heart of the phone, while the legacy node chips are the other less complex components that perform functions such as displays or power management.

Apple launched new iPhone models in September, and this quarter was the first full quarter of iPhone 13 sales, giving investors a glimpse of how competitive the devices are in the market.

Sales grew 9% annually to $71.63 billion, although they are growing more slowly than the company's total business.

In addition, Cook said Apple was proud to increase iPhone sales by 9%. This is despite supply constraints during the quarter.

Services, which include iCloud, Apple Music, search licensing and App Store fees, continued to grow strongly. It grew 25% annually to $19.52 billion.

Services represent the company's most profitable business unit. Its rise has increased the company's gross profit margin more than expected.

Apple's other product category, which includes the Apple Watch and AirPods, is up 13 percent annually. This quarter included sales of the latest Series 7 watches, which have a larger screen, and new AirPods.

Macs had the strongest growth of any Apple device line, growing 25 percent year over year to $10.85 billion.

In October, Apple introduced new MacBook Pro models, starting at $1,999, that included a new Apple chip instead of an Intel chip.

And a drop in iPad sales compared to last year. But that was probably because Apple couldn't produce enough iPads and prioritize other devices. Cook attributed the iPad results to significant supply constraints.