iPhone sales propel Apple's earnings beyond Wall Street expectations

Posted:
in AAPL Investors edited May 2023
Apple earned $94.8 billion in revenue in its second quarter of 2023, with earnings buttressed by iPhone sales beating the expectations of analysts and investors.

Apple CEO Tim Cook
Apple CEO Tim Cook


Announced on Thursday ahead of the usual analyst conference call, Apple raked in $94.3 billion in total revenue for the quarter ending March 2023, which is down from the $97.28 billion reported in Q2 2022. The earnings per share, set at $1.52 for the quarter, is the same as the $1.52 in the year-ago results.

The results follow a disastrous posting from Q1 2023, where Apple reported $117.15 billion, which was the first year-on-year quarterly drop in revenue since 2019. It was also the largest quarterly drop for a quarter since September 2016.

The Wall Street consensus had put Apple at $92.94 billion in revenue on average, with an EPS of $1.43.

Apple quarterly revenue and net profit as of Q2 2023
Apple quarterly revenue and net profit as of Q2 2023


The post-holiday quarter saw several launches and updates, including the M2 and M2 Pro Mac mini, the M2 Pro and M2 Max 14-inch MacBook Pro and 16-inch MacBook Pro, and a second-generation HomePod.

The main earner, iPhone, brought in $51.3 in revenue for the period, up from $50.6 billion in Q2 2022.

Mac revenue went down from $10.4 billion to $7.2 billion, while iPad saw a year-on-year decrease from $7.6 billion to $6.7 billion.

The ever-reliable growth of Services continued, with it reaching $20.9 billion, up from $19.8 billion in Q2 2023. Wearables, Home, and Accessories saw a small contraction, going from $8.8 billion to $8.76 billion YoY.

"We are pleased to report an all-time record in Services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high," said CEO Tim Cook. "We continue to invest for the long term and lead with our values, including making major progress toward building carbon neutral products and supply chains by 2030."

CFO Luca Maestri points out in the results release that year-on-year business performance has improved compared to the December quarter, and that Apple generated strong operating cash flow of $28.6 billion while returning over $23 billion to shareholders. "Given our confidence in Apple's future and the value we see in our stock, our Board has authorized an additional $90 billion for share repurchases. We are also raising our quarterly dividend for the eleventh year in a row."

Apple is continuing its practice of declining to offer detailed guidance on its future quarterly results.

More information about Apple's quarter will be raised as part of the analyst call, which follows the release of the results.

Read on AppleInsider
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Comments

  • Reply 1 of 33
    danoxdanox Posts: 2,988member
    If the full the range of Mac computers were for sale to the public, Apple probably would’ve been up in Mac Computer sales, when compared to last year’s quarter at the same time. 

    Also, looking at those numbers, you can see why Apple did not have any big layoffs, when compared to the other tech giants. Apple simply didn’t need to.
    edited May 2023 9secondkox2radarthekattwokatmewwatto_cobra
  • Reply 2 of 33
    sconosciutosconosciuto Posts: 270member
    We already knew why Apple didn’t have massive layoffs: they didn’t massively hire like Amazon and the rest.
    9secondkox2fastasleepavon b7MisterKittwokatmew
  • Reply 3 of 33
    9secondkox29secondkox2 Posts: 2,795member
    Apple always playing the long game. Slow and steady. Vs everyone else who goes on far sprees and then kills products and staff at the drop of a dime. 

    In the tech world, apple is the adult in the room. Gotta give ‘em their props. Almost unbelievable a company can be so good for so long, especially since the little upstart has become the big dog in the park. 

    Well done, Team Apple. Amazing. 

    Was expecting much worse news than this. 

    Bring on new iPhones, M3 Mac lineup, big iMac and Mac Pro. 
    roundaboutnowdanoxbadmonktmayMisterKitAnilu_777radarthekatAlex_Vaaplfanboytwokatmew
  • Reply 4 of 33
    fastasleepfastasleep Posts: 6,426member
    Unbelievable. So much for all the handwringing from the peanut gallery. 

    Also LOL at calling a $117.15 billion quarter “disastrous”. What a world. 
    aderutterroundaboutnowzeus423badmonkwilliamlondonMisterKitAnilu_777radarthekatcincyteeStrangeDays
  • Reply 5 of 33
    fastasleepfastasleep Posts: 6,426member
    danox said:
    If the full the range of Mac computers were for sale to the public, Apple probably would’ve been up in Mac Computer sales, when compared to last year’s quarter at the same time. 
    What do you mean by the full range? 🤔 
    williamlondonwatto_cobra
  • Reply 6 of 33
    MarvinMarvin Posts: 15,361moderator
    danox said:
    If the full the range of Mac computers were for sale to the public, Apple probably would’ve been up in Mac Computer sales, when compared to last year’s quarter at the same time. 
    The rest of the range only makes a fraction of the unit volume (<5%). Last year's revenue was due to the record M1 launch that near doubled their sales vs Intel.

    This year is a contraction from that record high. M2 would never reach that level but it's still way above Intel Mac sales.

    M3 and 15" Air will be able to go back up a bit, especially the 15" Air as it's the most popular form factor and will be at a higher price point.
    Anilu_777watto_cobra
  • Reply 7 of 33
    danoxdanox Posts: 2,988member
    We already knew why Apple didn’t have massive layoffs: they didn’t massively hire like Amazon and the rest.
    Apple has better management than Amazon, Meta or Google, being stupid and hiring more people than you need that’s bad management.
    Anilu_777watto_cobra
  • Reply 8 of 33
    danoxdanox Posts: 2,988member
    Marvin said:
    danox said:
    If the full the range of Mac computers were for sale to the public, Apple probably would’ve been up in Mac Computer sales, when compared to last year’s quarter at the same time. 
    The rest of the range only makes a fraction of the unit volume (<5%). Last year's revenue was due to the record M1 launch that near doubled their sales vs Intel.

    This year is a contraction from that record high. M2 would never reach that level but it's still way above Intel Mac sales.

    M3 and 15" Air will be able to go back up a bit, especially the 15" Air as it's the most popular form factor and will be at a higher price point.
    Since Apple doesn’t break that out, how do you know? It’s a slap in the face to all those people over the years who bought 27 inch iMac’s to be told that a 24 inch iMac is what they should settle for. Not selling a larger range of computers with different form factors, and having a downturn in the total number of Macs sold go hand-in-hand, there will be no growth in Mac computer sales, selling mini’s, a tiny iMac and laptop computers only. Someone in hardware must be screaming at Tim Cook and Marketing to pull their heads out of dark places. Because there will be no increase in Mac sales without more form factors being offered to the public to buy.
    9secondkox2Anilu_777macikewilliamlondon
  • Reply 9 of 33
    danoxdanox Posts: 2,988member
    danox said:
    If the full the range of Mac computers were for sale to the public, Apple probably would’ve been up in Mac Computer sales, when compared to last year’s quarter at the same time. 
    What do you mean by the full range? 🤔 
    Full range a larger screen iMac 27 inches or higher. It’s been over a decade, some form of a tower desktop, computer, half size or full size, and where is the rack mountable Mac, is Apple going to wait for those three guys who used to work at Apple, who now work for Qualcomm to introduce a Arm server? All these things Apple will do in the future, it’s just a question of how long Tim Cook is willing to look at fewer Mac’s sold per quarter, and leave billions sitting on the table.
    williamlondon9secondkox2zeus423
  • Reply 10 of 33
    macxpressmacxpress Posts: 5,840member
    danox said:
    danox said:
    If the full the range of Mac computers were for sale to the public, Apple probably would’ve been up in Mac Computer sales, when compared to last year’s quarter at the same time. 
    What do you mean by the full range? 🤔 
    Full range a larger screen iMac 27 inches or higher. It’s been over a decade, some form of a tower desktop, computer, half size or full size, and where is the rack mountable Mac, is Apple going to wait for those three guys who used to work at Apple, who now work for Qualcomm to introduce a Arm server? All these things Apple will do in the future, it’s just a question of how long Tim Cook is willing to look at fewer Mac’s sold per quarter, and leave billions sitting on the table.
    Oh an armchair CEO who thinks they can run Apple better than Apple...love these guys!
    williamlondonsconosciuto9secondkox2mike1Alex_VtundraboyStrangeDaystwokatmewwatto_cobrafastasleep
  • Reply 11 of 33
    avon b7avon b7 Posts: 7,772member
    danox said:
    We already knew why Apple didn’t have massive layoffs: they didn’t massively hire like Amazon and the rest.
    Apple has better management than Amazon, Meta or Google, being stupid and hiring more people than you need that’s bad management.
    It's hard to argue that Amazon didn't need to massively hire over the last few years. 

    Post pandemic, it's logical that layoffs would be needed. 
    muthuk_vanalingam
  • Reply 12 of 33
    sunman42sunman42 Posts: 273member
    Marvin said:
    danox said:
    If the full the range of Mac computers were for sale to the public, Apple probably would’ve been up in Mac Computer sales, when compared to last year’s quarter at the same time. 
    The rest of the range only makes a fraction of the unit volume (<5%). Last year's revenue was due to the record M1 launch that near doubled their sales vs Intel.

    This year is a contraction from that record high. M2 would never reach that level but it's still way above Intel Mac sales.

    M3 and 15" Air will be able to go back up a bit, especially the 15" Air as it's the most popular form factor and will be at a higher price point.
    The "full range" imho would be M3 (different range of options for different models) versions of the mini, the 24-inch iMac, the Studio, the MacBook (two sizes), the MacBook Pro (ditto), and the Mac Pro. Throw in a 27-inch iMac or an iMac Pro for good measure. that might take another year or 15 months to achieve, given current M3 yields at TSMC, but I'm guessing Q3 next year is going to look a lot different from this year's Mac results.
    watto_cobra
  • Reply 13 of 33
    waveparticlewaveparticle Posts: 1,497member
    danox said:
    If the full the range of Mac computers were for sale to the public, Apple probably would’ve been up in Mac Computer sales, when compared to last year’s quarter at the same time. 

    Also, looking at those numbers, you can see why Apple did not have any big layoffs, when compared to the other tech giants. Apple simply didn’t need to.
    Mac OS development is deteriorating. The iMac 24 text size cannot be changed from settings while MacBook Pro can. This inconsistency brings very uncomfortable user experience. Similar things happen elsewhere. Why would users be happy with purchasing a new Mac?
    williamlondon
  • Reply 14 of 33
    badmonkbadmonk Posts: 1,307member
    The other amazing thing about TC & company has been the skillful pivot to services being a significant portion of revenue.

    If there is a launch of AR/VR soon, it is amazing that the R&D hasn’t effected operating expenses or profit margin.
    radarthekatwatto_cobra
  • Reply 15 of 33
    9secondkox29secondkox2 Posts: 2,795member
    macxpress said:
    danox said:
    danox said:
    If the full the range of Mac computers were for sale to the public, Apple probably would’ve been up in Mac Computer sales, when compared to last year’s quarter at the same time. 
    What do you mean by the full range? 🤔 
    Full range a larger screen iMac 27 inches or higher. It’s been over a decade, some form of a tower desktop, computer, half size or full size, and where is the rack mountable Mac, is Apple going to wait for those three guys who used to work at Apple, who now work for Qualcomm to introduce a Arm server? All these things Apple will do in the future, it’s just a question of how long Tim Cook is willing to look at fewer Mac’s sold per quarter, and leave billions sitting on the table.
    Oh an armchair CEO who thinks they can run Apple better than Apple...love these guys!
    He’s right though. 

    The full lineup isn’t available. And the big iMac is a very big deal. 
    iqatedoScot1zeus423aaarrrggghmuthuk_vanalingammacikewilliamlondonh4y3swatto_cobra
  • Reply 16 of 33
    danoxdanox Posts: 2,988member
    macxpress said:
    danox said:
    danox said:
    If the full the range of Mac computers were for sale to the public, Apple probably would’ve been up in Mac Computer sales, when compared to last year’s quarter at the same time. 
    What do you mean by the full range? ߤ䦡mp;nbsp;
    Full range a larger screen iMac 27 inches or higher. It’s been over a decade, some form of a tower desktop, computer, half size or full size, and where is the rack mountable Mac, is Apple going to wait for those three guys who used to work at Apple, who now work for Qualcomm to introduce a Arm server? All these things Apple will do in the future, it’s just a question of how long Tim Cook is willing to look at fewer Mac’s sold per quarter, and leave billions sitting on the table.
    Oh an armchair CEO who thinks they can run Apple better than Apple...love these guys!
    Well this armchair quarterback thought when Apple canceled making Apple monitors it was a stupid idea, well what do you know Apple had to bring back curated Apple monitors after a few years, why because the third-party companies will never make monitors that work well with Mac computers, yes you can get them cheaper, but in the long term all they end up being just cheap crap, with compromises in functionality, by the way many people on this board at the time thought it was ok for Apple to cancel their curated in house monitors I bet you were one of them.

    This armchair quarterback, also remembers the last transition to Intel chips, which took a total of 13 months beginning to end for all Mac form factors. And last, but not least AAA games, probably are not gonna happen on Apple Silicon until Apple rolls up it’s sleeves and designs (or sponsors) at least two games that show Apple Silicon into its full potential, waiting for third parties to do it, has never worked out in the end for Apple. 
    edited May 2023 9secondkox2muthuk_vanalingammacikewilliamlondonh4y3swatto_cobra
  • Reply 17 of 33
    macxpressmacxpress Posts: 5,840member
    danox said:
    macxpress said:
    danox said:
    danox said:
    If the full the range of Mac computers were for sale to the public, Apple probably would’ve been up in Mac Computer sales, when compared to last year’s quarter at the same time. 
    What do you mean by the full range? ߤ䦡mp;nbsp;
    Full range a larger screen iMac 27 inches or higher. It’s been over a decade, some form of a tower desktop, computer, half size or full size, and where is the rack mountable Mac, is Apple going to wait for those three guys who used to work at Apple, who now work for Qualcomm to introduce a Arm server? All these things Apple will do in the future, it’s just a question of how long Tim Cook is willing to look at fewer Mac’s sold per quarter, and leave billions sitting on the table.
    Oh an armchair CEO who thinks they can run Apple better than Apple...love these guys!
    Well this armchair quarterback thought when Apple canceled making Apple monitors it was a stupid idea, well what do you know Apple had to bring back curated Apple monitors after a few years, why because the third-party companies will never make monitors that work well with Mac computers, yes you can get them cheaper, but in the long term all they end up being just cheap crap, with compromises in functionality, by the way many people on this board at the time thought it was ok for Apple to cancel their curated in house monitors I bet you were one of them.

    This armchair quarterback, also remembers the last transition to Intel chips, which took a total of 13 months beginning to end for all Mac form factors. And last, but not least AAA games, probably are not gonna happen on Apple Silicon until Apple rolls up it’s sleeves and designs (or sponsors) at least two games that show Apple Silicon into its full potential, waiting for third parties to do it, has never worked out in the end for Apple. 
    Oh wow you got 2 things to stick lol...you're gonna replace Tim Cook tomorrow
    mike1StrangeDayswilliamlondonwatto_cobrafastasleep
  • Reply 18 of 33
    macxpressmacxpress Posts: 5,840member
    macxpress said:
    danox said:
    danox said:
    If the full the range of Mac computers were for sale to the public, Apple probably would’ve been up in Mac Computer sales, when compared to last year’s quarter at the same time. 
    What do you mean by the full range? ߤ䦡mp;nbsp;
    Full range a larger screen iMac 27 inches or higher. It’s been over a decade, some form of a tower desktop, computer, half size or full size, and where is the rack mountable Mac, is Apple going to wait for those three guys who used to work at Apple, who now work for Qualcomm to introduce a Arm server? All these things Apple will do in the future, it’s just a question of how long Tim Cook is willing to look at fewer Mac’s sold per quarter, and leave billions sitting on the table.
    Oh an armchair CEO who thinks they can run Apple better than Apple...love these guys!
    He’s right though. 

    The full lineup isn’t available. And the big iMac is a very big deal. 
    No its not...Mac sales are not down because there's no 27" iMac lol. It's more because people are waiting for the M3 Macs. Maybe it's a big deal to you but that doesn't mean it's a big deal to the mass consumer base especially given that laptops are way out selling desktops. 
    edited May 2023 williamlondonwatto_cobra
  • Reply 19 of 33
    radarthekatradarthekat Posts: 3,858moderator
    avon b7 said:
    danox said:
    We already knew why Apple didn’t have massive layoffs: they didn’t massively hire like Amazon and the rest.
    Apple has better management than Amazon, Meta or Google, being stupid and hiring more people than you need that’s bad management.
    It's hard to argue that Amazon didn't need to massively hire over the last few years. 

    Post pandemic, it's logical that layoffs would be needed. 
    As a mind experiment I imagine a universe where the Apple management team were thrust into the job of running Amazon.  I think they’d look out at the world and count the number of landfills and self-storage facilities being used to pile up the detritus of hyper-consumerism, they’d look at the amount of cardboard being manufactured to ship a lot of unnecessary products to people who can’t seem to control their shopping addictions, and they’d look at the amount of silly and superfluous products being designed and manufactured.  They might would then seek to re-engineer Amazon’s business in a manner that helps people see the waste and the hollowness of consumerism.  They’d seek to shrink this scourge of excess and leave the world better.  There would not have been layoffs after a pandemic because, in my alternate universe, people during the pandemic would have had healthier purchase habits, buying the consumables they needed, which they would find just as convenient to go on purchasing from Amazon after the lockdowns ended. 

    A guy can dream. 
    Alex_VmacikeStrangeDaysh4y3swatto_cobrafastasleep
  • Reply 20 of 33
    radarthekatradarthekat Posts: 3,858moderator
    badmonk said:
    The other amazing thing about TC & company has been the skillful pivot to services being a significant portion of revenue.

    If there is a launch of AR/VR soon, it is amazing that the R&D hasn’t effected operating expenses or profit margin.
    Revenue and much higher gross margins.
    h4y3swatto_cobrafastasleep
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