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In a much-anticipated move, tech giant Apple has officially disclosed its earnings for fiscal Q3 2023, successfully allaying concerns among analysts about a potential drop in revenue. The results reveal that despite a 1% year-over-year dip, the company still managed to rake in an impressive $81.79 billion in revenue. Additionally, earnings-per-share stood at a healthy $1.26, with a quarterly profit of $19.88 billion, reflecting a commendable 5% increase compared to the previous year.
A notable highlight from Apple’s report is the milestone achievement of crossing one billion paid subscribers, signaling the brand’s unwavering popularity among users. Furthermore, Apple’s installed base of active devices reached an all-time high, showcasing the company’s continued dominance in the tech market.
As usual, Apple’s Q3 earnings announcement has piqued the interest of tech enthusiasts, eagerly awaiting the forthcoming iPhone 15 release scheduled for September. Typically, the company experiences a temporary slowdown in iPhone revenue during this quarter, as customers hold out for the latest model’s release. In addition to the upcoming iPhone, Apple introduced several new products in Q3 2023, including the highly anticipated 15-inch MacBook Air, the cutting-edge M2 Mac Studio, and the first-ever Apple Silicon Mac Pro.
Notably, analysts had predicted slightly lower revenue of $81.69 billion and earnings-per-share of $1.19 for this quarter. While the actual revenue fell short of the estimates by a marginal amount, it’s essential to recognize that the company’s net profit showed a notable increase from the previous year.
Apple’s change in reporting practices also caught the industry’s attention. The company has discontinued reporting unit sales for its products and now focuses on revealing a comprehensive breakdown of revenue by product category. This quarter’s results provided valuable insights, showing revenue figures for key product categories, as compared to the estimates provided by analysts.
Breaking down the numbers, iPhone revenue totaled $39.67 billion, slightly below the estimated $39.9 billion. Mac sales garnered $6.84 billion, also coming in under the estimated $6.6 billion. Similarly, iPad sales amounted to $5.79 billion, slightly lower than the estimated $6.4 billion. On the other hand, Wearables, Home, and Accessories experienced a pleasant surprise, with revenue of $8.28 billion, surpassing the estimated $8.4 billion. Additionally, the Services category exhibited significant growth, generating $21.21 billion, exceeding the estimated $20.8 billion.
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Apple’s CEO, Tim Cook, expressed his satisfaction with the company’s Q3 2023 earnings, particularly highlighting the record-breaking revenue in the Services sector, driven by the massive milestone of over 1 billion paid subscriptions. Cook also acknowledged the robust sales of the iPhone, particularly in emerging markets, as a significant contributing factor to its success.
Luca Maestri, Apple’s CFO, further elaborated on the company’s financial performance, pointing out that Q3 2023 demonstrated an improvement compared to the previous quarter. Notably, the quarter also saw an all-time high in active device installations across all geographic segments.
Financially, Apple demonstrated its sound financial management, generating a robust operating cash flow of $26 billion during the quarter. The company also continued its commitment to shareholders, returning over $24 billion to them while simultaneously investing in long-term growth plans.