Apple reports record-breaking $83B in revenue in supply impacted Q3 2022
Apple has reported that it made a record-breaking $83 billion in the third quarter of 2022, coming slightly ahead of Wall Street expectations for the economically impacted fiscal period.
Apple CEO Tim Cook
The iPhone maker on Thursday announced the results ahead of its scheduled conference call with analysts. Its Q3 2022 results mark a slight 2% year-over-year increase from the $81.4 billion in revenue reported in 2021. Apple reported earnings-per-share of $1.20.
Analysts were expecting Apple to report revenue around $82 billion and earnings-per-share of $1.16 in the June quarter.
The June quarter was the first full quarter of availability for several new products, including the Mac Studio, Apple Studio Display, and third-generation iPhone SE. Apple also announced new MacBook Air and MacBook Pro models, though those releases were later in the quarter and won't have a significant impact on earnings.
Apple's Q3 2022 also saw the brunt of effects from Covid-related disruptions in China and supply chain issues. Although it did not provide formal guidance, Apple warned of a $4 billion to $8 billion revenue hit from those problems.
"This quarter's record results speak to Apple's constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers," said Apple CEO Tim Cook. "As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone."
The company's iPhone revenue reached $40.6 billion, up slightly from $39.6 billion in the year-ago quarter. iPad revenue is down to $7.22 billion, a decrease from $7.37 billion in Q3 2021.
Mac revenue went down to $7.38 billion, down from the year-ago revenue of $8.2 billion. Wearables, Home, and Accessories decreased slightly to $8.08 billion, down from $8.8 billion.
Services, which has long been a growth driver for Apple, brought in $19.6 billion in the June quarter, an increase from the $17.4 billion it raked in during Q3 2021.
As has been typical during the pandemic, Apple did not provide formal revenue guidance for the upcoming September quarter.
Apple's board of directors declared a cash dividend of $0.23 per share. The dividend will be payable on Aug. 11 to shareholders of record as of the close of business on Aug. 8.
"Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. 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 Apple CFO Luca Maestri. "During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans."
Read on AppleInsider
Apple CEO Tim Cook
The iPhone maker on Thursday announced the results ahead of its scheduled conference call with analysts. Its Q3 2022 results mark a slight 2% year-over-year increase from the $81.4 billion in revenue reported in 2021. Apple reported earnings-per-share of $1.20.
Analysts were expecting Apple to report revenue around $82 billion and earnings-per-share of $1.16 in the June quarter.
The June quarter was the first full quarter of availability for several new products, including the Mac Studio, Apple Studio Display, and third-generation iPhone SE. Apple also announced new MacBook Air and MacBook Pro models, though those releases were later in the quarter and won't have a significant impact on earnings.
Apple's Q3 2022 also saw the brunt of effects from Covid-related disruptions in China and supply chain issues. Although it did not provide formal guidance, Apple warned of a $4 billion to $8 billion revenue hit from those problems.
"This quarter's record results speak to Apple's constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers," said Apple CEO Tim Cook. "As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone."
The company's iPhone revenue reached $40.6 billion, up slightly from $39.6 billion in the year-ago quarter. iPad revenue is down to $7.22 billion, a decrease from $7.37 billion in Q3 2021.
Mac revenue went down to $7.38 billion, down from the year-ago revenue of $8.2 billion. Wearables, Home, and Accessories decreased slightly to $8.08 billion, down from $8.8 billion.
Services, which has long been a growth driver for Apple, brought in $19.6 billion in the June quarter, an increase from the $17.4 billion it raked in during Q3 2021.
As has been typical during the pandemic, Apple did not provide formal revenue guidance for the upcoming September quarter.
Apple's board of directors declared a cash dividend of $0.23 per share. The dividend will be payable on Aug. 11 to shareholders of record as of the close of business on Aug. 8.
"Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. 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 Apple CFO Luca Maestri. "During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans."
Read on AppleInsider
Comments
Tim is at Apple because of Steve, and Tim has carried Steve's torch of strong principles tall and proud. I fear the next CEO will not do that, and it will be a sad moment of change in Apple's lifetime. But change is inevitable.
Are upgrades increasingly restricted by design ? Time (or Tim : ) may tell, of course... Are drive bays and ram slots hard to thwart as well, other than Apple self interest...?
For the current inflation at least, is caused by too much money in the hands of consumers and that is causing a high demand for products, thus resulting in shortages and higher price. Couple this with the shortage of parts needed to make products and the higher cost of labor, the price of the product will rise on basic Econ 101 concerning supply and demand.
For the past couple of years, the government had flushed the economy with over $5T dollars in stimulus checks. Plus extended tax credits, forgave loans, increased benefits for unemployment along with extending how many months one can collect it, handed out free money to small businesses that had to shut down so they can keep paying their employees, kept interest rate at near 0, consumers had extra money they once use for travel and vacations, etc..This inflation is the result of 2 years of pumping too much money into the economy, while businesses were experiencing shortage of parts to make their products and higher cost of labor, not because corporations are making too much profit by charging more for their products.
https://www.nytimes.com/2022/01/22/business/economy/inflation-biden-pandemic.html
Think for once. Why is the Fed trying to curb inflation by raising interest rate? What effect does that have on profits made by corporations from selling their products? The increase in the interest rate is to curb consumer spending caused by the low cost of borrowing money to buy stuff. Car loans become more expensive as with mortgages, refinancing homes, home equity loans, credit card finance charges and even my Schwab margin account interest rate have recently increased. This will hopefully lower the amount of money in consumers hands, to help lower demand, thus increase supply, resulting in lower prices for consumer goods. That's the way it works. Or at least it's suppose to.
https://www.washingtonpost.com/us-policy/2022/06/15/federal-reserve-interest-rates-faq/
Anyone that claim inflation is cause by corporations excessive profits is totally clueless. Corporations can not raise prices in order to increase profits, beyond what consumers can afford to pay. Corporate profits are driven by higher prices due to shortages, cause by too much money in the hands of consumers causing a high demand. If consumers did not have the money to spend in the first place, then raising the price would had resulted in less sales and less profit.
BTW- How to you know how many iPhones were sold in this quarter "record breaking revenue" number? Apple do not reveal how many iPhone are sold each quarter. Maybe Apple "record breaking revenue" is due to selling more iPhones and not due to selling iPhones at a higher price? Or selling more higher end iPhones than lower end models but overall less iPhones than last quarter? Plus revenue is not profit. How do you know that Apple "record breaking revenue" resulted in more in more profit? Maybe inflation or higher labor cost ate into their profit margins and even with "record breaking revenue", Apple made less profit because they didn't raise the price on their iPhones or didn't raise it enough? As an investor in AAPL, as many here are, we would like to know where you got the numbers to make such a statement. Unless of course, you just made it up.
https://www.theverge.com/2018/11/1/18053782/apple-earnings-q4-2018-stop-ipad-iphone-mac-unit-sales-disclosure
Umm. Revenue and profit are not the same thing.