iPhone sales propel Apple's earnings beyond Wall Street expectations
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
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
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
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
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
Comments
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.
Post pandemic, it's logical that layoffs would be needed.
If there is a launch of AR/VR soon, it is amazing that the R&D hasn’t effected operating expenses or profit margin.
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.