Apple overcame considerable headwinds to set a new revenue record during its most recent financial quarter, the company said Thursday. Cupertino once again beat analysts’ expectations, despite COVID-19 lockdowns in China that slowed Mac and iPad production.
“Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment,” said Luca Maestri, Apple’s chief financial officer, in a press release announcing the Q3 2022 earnings.
Apple grows Q3 2022 revenue despite production problems
Back in April, Apple warned that global supply constraints and COVID-19 lockdowns in China could sap between $4 billion and $8 billion in revenue from the June quarter. The company struggled to assemble enough Macs and iPads to meet demand, though it seems to have kept up with iPhone orders.
With this in mind, analysts predicted Apple would report June quarter revenues of about $82 billion and earnings per share of $1.16. That would have represented very modest growth.
But the company beat that, with $83 billion in revenue and quarterly earnings per diluted share of $1.20 — a new Q3 record. Revenue actually grew 2% year over year.
“We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category,” said Maestri.
This was one of Apple’s toughest quarters in a long time. And Cupertino did more than survive — it thrived. And Wall Street seems to agree. The price for APPL shares rose about 3% in after-hours trading Thursday.
Apple deals with multiple device revenue drops
Revenue from iPhone increased year over year. It rose 3% to $40.7 billion. But that was a rare bright spot on the hardware front for Apple this quarter.
Revenue from sales of Macs dropped 10% to $7.4 billion. iPad revenue fell 2% to $7.2 billion. Both drops undoubtedly resulted from product assembly problems Apple experienced this spring, as well as extremely strong demand in previous quarters.
Revenue from Services like the App Store and Apple Music grew 12% annually to $19.6 billion, but that’s a slight quarter-over-quarter drop.