Apple saw a significant dip in sales but narrowly beat overall revenue projections in its most recent earnings report.
The big tech giant unveiled its most recent quarterly earnings on Thursday after the final bell, and despite narrowly beating analysts’ projections, Apple’s stock fell nearly 3% after hours. The drop came after Apple executives admitted that the business likely won’t return to growth through the holiday season, which is typically when it brings in the big bucks. Still, Apple CEO Tim Cook expressed much optimism about the company’s products and future.
“Today Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in Services,” Cook said in a statement. “We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon-neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030.”
Apple experienced another drop in overall sales for the fourth quarter in a row, including significant dives from the Mac and iPad sectors. Outside of the iPhone, revenue for all of Apple’s hardware devices declined year-over-year. Apple’s iPhone sales increased by 2% year-over-year, and the earnings period only included about a week of iPhone 15 sales. Cook told CNBC that iPhone 15 sales are pacing to outsell iPhone 14 sales.
Earlier this week, Apple announced a new iMac, Macbook Pro laptops, and the third generation of its computer processing chips. Apple’s M3 chips are equipped with advanced technology for faster processing and graphics. The big tech giant’s new MacBook Pro line will run on the new M3 chips, with a low-end model priced at $1,599, while more expensive models will run on the more advanced M3 Pro and M3 Max chips. Apple promises that the new MacBooks will retain 22 hours of battery life before needing a charge. Apple’s new iMac will run on M3 chips and is the first upgrade to the product since April 2021. The desktop comes in green, blue, orange, yellow, silver, purple, and pink.
More insights from Apple’s recent earnings report:
- Apple reported $383.29 billion in sales for its entire 2023 fiscal year, down nearly 3% from fiscal year 2022.
- The company’s services sector generated $22.3 billion in revenue, while products generated $67.2 billion.
- Apple’s services business, which includes iCloud storage, Apple Music, App Store sales, advertising, and AppleCare, increased 16% year-over-year.
- Apple Mac and iPad businesses produced $7.6 billion and $6.4 billion, respectively. Mac sales fell nearly 34% year-over-year, and iPad sales were down 10%.
- Apple’s wearables unit, which includes AirPods and the Apple Watch, decreased by 3% year-over-year, with $9.3 billion in revenue.
For details on Meta, Alphabet, Microsoft, and Snap‘s recent earnings, check out Boardroom’s latest Big Tech Earnings Roundup. We have everything you need to know about Amazon’s most recent financial outlook, too.
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