Tim Cook highlights all-time record for Apple Services & quarterly best iPhone sales

AppleInsider

In Apple's latest earnings report, CEO Tim Cook says that Services had their best revenues ever, and that iPhone revenues hit a quarterly record.

Apple's iPhone revenues hit a September quarter record

Apple has announced its fourth quarter financial results, with a reported revenue of $89.5 billion. While overall that's below the same period in 2022, Cook painted a brighter picture of the details.

"Today Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in Services," said Cook.

"During the September quarter," he continued, "our business performance drove double digit EPS [Earnings Per Share] growth and we returned nearly $25 billion to our shareholders, while continuing to invest in our long-term growth plans."

The figures for the iPhone are of particular interest since falling demand for the iPhone 15 in China had made many -- but not all -- analysts predict a downturn for the category.

Read on AppleInsider

charlesn

The genius of Tim Cook. Fact is, computer and phone hardware has, for a while, been better and more powerful than "most people" need. The reasons to upgrade get harder to come by and the upgrade cycle becomes longer and sales decline. But Tim has built Services from nothing into a revenue powerhouse with 70% margins that keeps Apple financially healthy even as other areas of its business decline. One example: people don't think of Apple as a gaming company, and I get that. But Apple earns more profit from App store games than Sony, Nintendo, Microsoft and Activision do from their gaming businesses.... COMBINED. So, from a business perspective, Apple is the king of gaming, but that flies under the radar. I have to say that I never expected iPhone 15 to generate record revenue for this quarter, which could only result from more expensive Pro models making up a higher percentage of units sold. So much for the "Apple is doomed, they charge too much" soothsayers. 

chasm

Charlesn, your post sums it up very well, but yes the iPhone 15 wasn’t going to make much of a dent when it only became available (as happens ever year) very close to the end of the quarter.

While most media tend to emphasize the bad news (if there is any) because it’s fairly rare with Apple, there’s some promising signs for 2024 if inflation can be better controlled, and the overall economy improves for working people.

charlesn

chasm said:

Charlesn, your post sums it up very well, but yes the iPhone 15 wasn’t going to make much of a dent when it only became available (as happens ever year) very close to the end of the quarter.

While most media tend to emphasize the bad news (if there is any) because it’s fairly rare with Apple, there’s some promising signs for 2024 if inflation can be better controlled, and the overall economy improves for working people.

The point of what I said about the iPhone 15 is that it (surprisingly) DID score record revenue for Apple--the best September quarter for iPhone ever. And the key to that success being the high demand for the most expensive Pro models, which boosted revenue and profitability. 

mikethemartian

The iPhone numbers didn’t beat the 4% rate of inflation from September 2022 to September 2023 so they actually went down once you factor that out.

schlack

Currently on iPhone 12. 

I went to look at the iPhone 15.

Couldn't find any qualitative reason to upgrade, except for better battery life.

I'm someone who doesn't mind spending. Just want to have a reason.

Ok, so what would make me buy? I'm not sure...maybe...

- Telescopic zoom (like the Max, but on the other phones, and with more zoom, 5x isn't crazy impressive compared to other phones)
- Much faster charging
- gesture control over music playback, web surfing, etc.
- something I haven't thought of yet???

charlesn

mikethemartian said:

The iPhone numbers didn’t beat the 4% rate of inflation from September 2022 to September 2023 so they actually went down once you factor that out.

That's not how Wall Street views revenue reports, but you can look at it any way you'd like. It was both a 3Q record for iPhone revenue and a 3Q record for iPhone global share of smartphone revenue, with Apple getting 43%. And Apple accomplished both without raising prices from last year.