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.
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.
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’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 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.”
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.
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.
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.
The first three months of 2022 were good to Apple, with revenue setting a quarterly record. But the company warned on Thursday that problems getting components and assembling products will take a nasty chunk out of revenue for the current quarter. The hit will to be between $4 billion and $8 billion.
But there’s also plenty of good news in from the conference call CEO Tim Cook had with investors after Apple’s March quarter results were announced.
Apple brought in $97.3 billion in revenue during the January-to-March period. That’s a new record for March-quarter revenue. And it’s an increase of 9% over the same period of 2021.
The company also set March-quarter records for iPhone, Mac, wearables and more.
Wall Street analysts harbor modest hopes for Apple’s most-recent financial quarter. They predict the company saw its revenue rise by 5% versus the same quarter of 2021.
The iPhone-maker will announce the results of the January-through-March period ahead of Thursday’s quarterly earnings call. Investors will be looking closely to see how the company is managing the ongoing chip shortage, COVID-19 lockdowns at assembly plants, inflation and other challenges.
The lone dark spot in Apple’s otherwise bright Q4 earnings report was iPad. And analysts are out with their estimates of how bad the damage was, with Apple’s quarterly tablet shipments possibly dropping as much as 21% year over year.
The only good news for Apple is that the drop off wasn‘t because of low demand. It couldn’t get the necessary parts to make sufficient devices to meet demand.
Apple sold a crazy number of iPhones and Macs during the December quarter. And the result is what CEO Tim Cook called the company’s “biggest quarter ever.”
Take a deeper dive into the details to see how Apple was so very successful.
Apple raked in $123.9 billion in revenue during the last three months of 2021. That’s a year-over-year increase of 11%. More importantly, it’s significantly higher than financial analysts had predicted.
All that revenue led to quarterly earnings per diluted share of $2.10. Again, that solidly beat expectations.
When Apple reveals its financial results from the holiday shopping season on Thursday, analysts predict the company will announce its best quarter ever.
Whether the Mac-maker meets this lofty goal will have a big effect on its stock price, which has been sliding in recent weeks.
Apple revenue during the July-to-September quarter totaled $83.4 billion, up 29% year over year and a new record for the quarter. That lead to an dramatic increase in net income. Revenue from iPhone was up significantly, while iPad, Mac, wearables and services revenue grew by smaller percentages.
But analysts had been expecting more. The consensus was for Apple’s total revenue to be nearly $85B. It’s rare for the company to not exceed these expectations. Apple execs said in a conference call after the announcement that component supply constraints cut revenue by $6B.
Apple just revealed that its made heaps of money last quarter. It broke all kinds of revenue records, and Mac, iPhone and iPad contributed strongly to the total.
But there are also some dark clouds in Apple future. Read on to get the good news and bad from the company’s most recent financial earnings results.
Apple took in $81.4 billion in revenue during its most recent financial quarter, up 36% from the same quarter of last year. And profits were up as well, with earning per share hitting $1.30.
Market analysts just can’t keep up with how well the iPhone-maker is doing. These results beat expectations handily.
The first three months of 2021 brought a flood of revenue for Apple, up 54% from last year. And profits, too. The company had a successful quarter all around, with double-digit growth in iPhone, Mac, iPad, wearables and services revenue.
A shining star in the results was iPhone revenue, which increased by a whopping 65%. But other product categories increased by even higher percentages.
Wall Street thinks Apple recently finished an amazing quarter. If the analysts are right, the company will reveal on Wednesday the results of a January-through-March period with significant revenue growth in all its products, both hardware and services.
Apple will announce the financial results of its winter quarter on April 28. So far, people forced to work and learn from home have been very good for the Mac-maker’s bottom line. We’ll soon see if that carried through to the beginning of 2021.
iPad shipments shot up 40% during the last quarter of 2020, according to a market research firm. And the whole tablet market increased dramatically.
This growth helped Apple hold onto its place as the world’s second largest computer maker.
COVID-19 both helped and hurt Apple earnings in the company’s most-recent financial quarter. CEO Tim Cook and CFO Luca Maestri discussed the nitty-gritty details of the results Thursday. They also shared what’s really going on with Apple as it tries to keep releasing best-selling products in the middle of a pandemic that’s upended the world economy and ordinary people’s lives.
Here are seven things we learned from Apple’s Q4 2020 earnings call.
Apple pulled in more revenue last quarter than in any previous July-through-September period, despite the COVID-19 pandemic. Growth came from sales of Mac and iPad, as well as revenue from services.
But iPhone revenue was down dramatically because of the delayed release of the iPhone 12 series. That hurt earnings significantly.
Apple spends less than its chief competitors on research and development, both in total dollars and as a percentage of its revenue.
Still, the company spends far more now than it did before Tim Cook ran the company.
