What explains the operating profit fluctuations since 2022?

Apple's operating profit has experienced fluctuations since 2022, primarily due to changes in revenue streams and market conditions: 1. **Revenue Shifts**: Between 2021 and 2022, Apple's revenue increased by 7.8%, driven by strong demand for its iPhone, Mac, and Wearables, Home, and other Accessories. This shift in demand contributed to the increase in operating income from $114.3 billion in 2023Q4 to $119.44 billion in 2022Q4. 2. **Smartphone Market Decline and Competition**: Despite the growth in other segments, the smartphone market experienced a decline, which affected Apple's revenue growth rate. The growth rate for the segment decreased from 27.3% in 2021 to 14.2% in 2022, and further to 6.7% by the end of the first half of 2023. This decline, coupled with increased competition, especially from Asian companies, impacted Apple's operating income. 3. **Geopolitical Factors**: The impact of geopolitical factors, such as the Trump administration's tariffs, could also have influenced Apple's operating income. While these tariffs may be transitory, they could have caused short-term fluctuations in profit margins as Apple adjusted its supply chain. In summary, Apple's operating profit fluctuations since 2022 are driven by shifts in revenue streams, particularly the impact of the smartphone market decline and increased competition, along with geopolitical factors such as tariffs. |code|Ticker|Name|Date|Operating Income YoY|Operating Income|market_code| |---|---|---|---|---|---|---| |AAPL|AAPL.O|Apple|2022 Q1|23.7192103536709|4.1488E10|185| |AAPL|AAPL.O|Apple|2022 Q2|9.002654255899357|2.9979E10|185| |AAPL|AAPL.O|Apple|2022 Q3|-4.35215120616762|2.3076E10|185| |AAPL|AAPL.O|Apple|2022 Q4|4.65820230387623|2.4894E10|185| |AAPL|AAPL.O|Apple|2023 Q1|-13.189355958349402|3.6016E10|185| |AAPL|AAPL.O|Apple|2023 Q2|-5.540545048200407|2.8318E10|185| |AAPL|AAPL.O|Apple|2023 Q3|-0.3380135205408216|2.2998E10|185| |AAPL|AAPL.O|Apple|2023 Q4|8.335341849441633|2.6969E10|185| |AAPL|AAPL.O|Apple|2024 Q1|12.097401155042203|4.0373E10|185| |AAPL|AAPL.O|Apple|2024 Q2|-1.4760929444169786|2.79E10|185|