Apple’s revenue surged 11% on year to an all-time high of $123.9 billion during its fiscal 2022 first quarter ended December 25, the company has announced, despite the global supply-chain challenge that plagued tech companies. 

Every Apple product line, except iPad sales, recorded an on-year growth despite management warnings in October that supply issues could hit sales. This was the first full quarter since Apple’s iPhone 13 series debuted in September, giving investors a peek into the devices’ competitiveness. iPhone sales rose 9% annually to $71.63 billion, although at a slower pace than the company’s overall business. 

Overall, sales of Mac rose 25% to $10.85 billion, while iPad revenue fell 14%. The Services segment, which includes Apple Music, iCloud, search licensing, and App Store fees, rose 25% annually to $19.52 billion. The segment is Apple’s most profitable and its rise is being attributed to Apple’s gross margin beating estimates.

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Apple’s other product categories, including the Apple Watch and AirPods, rose 13% on year. 

“This quarter’s record results were made possible by our most innovative lineup of products and services ever,” said Apple CEO Tim Cook. 

“We are gratified to see the response from customers around the world at a time when staying connected has never been more important. We are doing all we can to help build a better world — making progress toward our goal of becoming carbon neutral across our supply chain and products by 2030, and pushing forward with our work in education and racial equity and justice.”

Apple’s earnings are being closely monitored by investors as a bellwether ahead of other US tech giants, including Amazon, Google-owner Alphabet, and Facebook-parent Meta Platforms, posting quarterly results next week.

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Apple reported a profit of $2.10 a share for the holiday period, beating analyst estimates of $1.90 a share.

“The very strong customer response to our recent launch of new products and services drove double-digit growth in revenue and earnings, and helped set an all-time high for our installed base of active devices,” said Apple CFO Luca Maestri. 

“These record operating results allowed us to return nearly $27 billion to our shareholders during the quarter, as we maintain our target of reaching a net cash neutral position over time.”

The board has announced a cash dividend of $0.22 per share of the common stock, payable on February 10.

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Speaking to The Wall Street Journal following the earnings announcement, Cook said the supply-chain challenges were improving. 

“We saw supply constraints across most of our products,” Cook said. 

“We’re forecasting that we will be less (constrained) in March than we were in the December quarter.”