| Cult of Mac

5 reasons to ignore Apple’s rare revenue dip


Apple logo overlayed in front of a stormy sky with sun breaking through the clouds, and the text,
Despite a 3% year-to-year drop in quarterly revenue (to "only" $94.8 billion), Apple delivers plenty of reasons for optimism.
Photos: Michael & Diane Weidner and Sumudu Mohottige/Unsplash License/Modified by Cult of Mac

Perhaps the best phrase to describe the results of Apple’s most recent financial quarter is, “It could have been worse.” Total revenue dropped 3% as the company battled inflation and other macroeconomic problems not of its making.

Still, Apple’s quarterly numbers beat the overly pessimistic Wall Street estimates. And there is more good news buried in the results Apple reported Thursday (and in the company’s earnings call with investors). Read on for five reasons to be optimistic about Apple’s future.

Apple brings in robust iPhone revenue but Mac and iPad are down


The Company posted quarterly revenue of $94.8 billion, down 3 percent year over year, and quarterly earnings per diluted share of $1.52, unchanged year over year.
Apple posts quarterly revenue of $94.8 billion, down 3% year over year.
Photo: Alex Kalinin/Unsplash License/Modified by Cult of Mac

During the first three months of 2023, Apple’s total revenue dropped 3% year over year. iPhone was a bright spot, but revenue from virtually all of the company’s other product segments saw annual declines. CEO Tim Cook blamed the drop on a “challenging macroeconomic environment.”

While the financial news isn’t good, Wall Street had been expecting it to be even worse. AAPL is up in after-hours trading on the news.

Wall Street thinks slowing sales will hit Apple’s bottom line


Wall Street thinks Apple is just limping along
Market watchers predict a down quarter for Apple.
Photo: Anna Nekrashevich/Pexels

Don’t expect record-breaking profits when Apple reveals its financial results from the first three months of 2023. Quite the opposite. Analysts are predicting that the company’s revenue and profits will be down when compared to the same quarter of 2022.

If true, this will be the second quarter in a row in which global problems cut into Apple’s bottom line.

Today in Apple history: Steve Jobs says Apple is finally debt-free


Apple is worth more than the entire US energy sector combined
This was a significant moment in Apple's turnaround.
Photo: Ste Smith/Cult of Mac

February 18: Today in Apple history: Steve Jobs says Apple is finally debt-free February 18, 2004: Steve Jobs sends an internal memo to Apple employees revealing that the company is, for the first time in years, totally debt-free.

“Today is a historic day of sorts for our company,” he writes. This marks a big turnaround from the bad old days of the 1990s, when Apple carried more than $1 billion in debt — and faced the danger of bankruptcy.

5 upbeat takeaways from Apple’s optimistic earnings call


A rainbow Apple logo looms over a cloudy sky with the sun peeking through. The words
Wall Street might not be happy right now, but Apple sees strong growth ahead.
Image: Cult of Mac, based on photos by Aaron Burden and Sumudu Mohottige/Unsplash License

Although Apple’s December 2022 quarter was something of a disappointment, thanks to declines in revenue and profits, company executives accentuated the positives whenever possible during an earnings call with investors on Thursday.

Here are some upbeat developments coming out of Apple’s Q1 2023 financial results, including a significant milestone in active users and a big jump in iPad revenue.

Apple surpasses 2 billion active devices


A Mac, iPhone and iPad with the words
Apple continues to woo new users and passes another milestone: 2 billion active devices as of February 2023.
Photo: Oleg Ivanov/Unsplash License

Apple’s installed base now exceeds 2 billion active devices, CEO Tim Cook said during Thursday’s earnings call. Although revenue in Apple’s first quarter fell $6.7 billion short of last year’s, the continued growth helped the company achieve what Cook called “a truly incredible milestone.”

Apple’s holiday quarter comes in worse than expected


Apple logo with the text
$117.2 billion in revenue seems like a lot of money, but Wall Street expected more from Apple
Image: Cult of Mac

Apple’s financial results from the December 2022 quarter include revenue and earnings per share that declined compared to the same period of the previous year. The figures did not live up to analysts’ expectations, which is dropping the share price.

Still, CEO Tim Cook stayed positive: “As we all continue to navigate a challenging environment, we are proud to have our best lineup of products and services ever, and as always, we remain focused on the long term and are leading with our values in everything we do.”

Wall Street thinks Apple is just limping along


Wall Street thinks Apple is just limping along
While the final quarter of 2022 looks to have been a poor one for Apple, the future looks brighter.
Photo: Anna Nekrashevich/Pexels

Analysts don’t expect to be wowed when Apple announces the results of its most recent financial quarter Thursday. They predict the company’s revenue declined slightly during the October-through-December period.

Feeding into the prediction is the struggle Apple had meeting iPhone demand during the quarter, which a top market-analysis firm says could have caused a double-digit drop in shipments. Plus, Apple broke tradition by not introducing new Macs.

Huge jump in Mac revenue propels Apple to another record-breaking quarter


Apple MacBook cash dollars money
A 25% increase in Mac sales helped Apple beat analysts' expectations during the September quarter.
Photo: Ed Hardy/Cult of Mac

Apple pulled in record revenue during the July-through-September quarter: $90.1 billion, an increase of 8% over the same period of last year. That’s $1.29 in earnings per share, a 4% annual bump. Most of Apple’s signature products experienced revenue growth.

“Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop,” said Luca Maestri, Apple’s CFO.

Why Apple is (nearly) recession-proof


Apple’s financial results were all the company could ask for.
Analysts expect consumers to keep buying Apple products, no matter what the global economy does.
Graphic: Cult of Mac

Although economists can’t agree whether a global recession is on the way, it’s definitely a possibility. But Apple execs don’t seem to have a lot to worry about – market analysts remain generally upbeat about the company.

Here are comments from a range of experts that are sure to warm Apple CEO Tim Cook’s heart.