Apple posted record revenue in the fiscal first quarter of 2022, as it looks to sports and VR for future growth.
The largest publicly traded company in the world by market capitalization brought in $123.9 billion in the quarter ending December 25, 2021, up 11% year over year.
- Apple’s services sector, which includes Apple Fitness+, Apple Arcade, Apple TV+, and Apple Music grew 23.8% to $19.5 billion.
- The “wearables, home and accessories” category brought in $14.7 billion, up 13.3% year-over-year.
- The company continued to have strong profit margins, tallying $34.6 billion in net income in the quarter.
Apple is ready to spend billions on live sports in the coming years to drive subscribers to Apple TV+, according to investment firm Wedbush.
The company is reportedly in serious talks with Major League Baseball on a weekday package. It has also shown interest in “NFL Sunday Ticket” which could cost $2.5 billion annually in broadcast rights.
VR on the Horizon
Apple is widely believed to be working on a VR headset and associated technology. The headset would likely integrate with the company’s existing devices.
The company has made its Apple Watch integral to its subscription fitness program, which incorporates classes, music, and biometric tracking.
Meta, which has hired around 100 engineers from Apple in recent months, has made fitness a central component of its pivot to VR and the metaverse.