Apple and Arista Networks Revenue Show No Trace of Crisis

Revenue

In the past fiscal year, Apple’s (AAPL) revenue rose 33% to $365.8 billion. Profits climbed 65% to $94.7 billion.

Apple Still Generates Most of Revenue From iPhones

Thanks to the many new models released last year, revenue in this division rose 39%. At $68.4 billion, the Service division has become the second largest revenue generator. Apple continues to expand this division, offering customers various cloud solutions, acting as a streaming provider for music and TV content, and offering subscription models for everything from games to online fitness coaching.

The division managed to grow by 27%. The Wearables, Home and Accessories segment grew by 25%. In addition to the successful Apple Watch, this includes the Apple TV streaming box and the numerous headphone models sold under the Apple and Beats brands.

Apple Benefits From Own Chip Development

The Mac (+23%) and iPad (+34%) divisions benefited from the launch of Apple’s own M1 processors. The microchips developed in-house are significantly more powerful and at the same time more energy-efficient than the competition’s products.

With the M1 Pro and M1 Max performance models and the completely redesigned MacBook Pro, Apple is once again appealing to the professional customer group that is willing to invest in high-priced hardware. Currently, the information about the entry into the market for automobiles and mobility is growing. Apple wants to put its first cars on the road in 2025, which will then be fully autonomous.

AAPL Company Portrait

Apple is one of the world’s leading electronics companies. The company designs, produces and markets hardware and software solutions for private and business use. The most famous product is the iPhone. The group’s devices belong to the premium class in all categories from smartwatches to high-performance PCs. The company regularly occupies top positions in international brand rankings.

Arista Networks Benefits From the Digitization Wave

In the first 9 months, Arista Networks (ANET)  increased sales by 27% to $2.1 billion. The Product division was able to grow by 30%, while the smaller Service division achieved growth of 16%. Profit climbed 31.4% to $602 million. The company is fully benefiting from the digitization wave triggered as a result of the COVID-19 pandemic.

Last quarter, the company was awarded a contract to develop a new cognitive enterprise network for the Australian Stock Exchange’s Sydney, Melbourne and Perth sites. The new network uses the Arista 720XP series switching platform, which is specifically designed to minimize latency in high-frequency trading. The company also unveiled the Arista C-360, an access point that supports the new Wi-Fi 6e WLAN standard.

Wi-Fi 6e uses the 6 GHz band in addition to the 2.4 GHz and 5 GHz bands. This makes it possible to double the speed of wireless network devices. With this access point, Arista is primarily targeting companies that want to make their offices fit for post-pandemic everyday life and enable real-time applications and video connections in high quality even with high employee density.

Stock Split and Share Buybacks

To remain attractive to retail investors, Arista has split its stock 4:1. The company expects Q4 revenue to be between $775 million and $795 million and plans to buy back $1 billion worth of its own stock. This a great positive effect on the share price.

ANET Company Profile

Arista Networks has positioned itself for the era of cloud and real-time computing. Its core product is extremely powerful high-speed network switches, something like switching points on data highways for mainframe systems. The crown jewel is the Linux-based open operating system EOS.

This analysis of revenues further proves that some companies are able to remain stable and show no sign of crisis during a time of generally weak markets.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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