Apple turns wholesome revenue regardless of weak iPad gross sales
Apple appears to be weathering the financial storm, albeit with a couple of hitches. The corporate reported a report excessive income of $90.1 billion in its fiscal fourth quarter, with a internet revenue of $20.7 billion. Whereas these had been solely slight will increase versus the identical interval final yr (income was up ‘simply’ 8 p.c), they got here regardless of a tough financial local weather and near-flat revenue growth within the earlier quarter.
The problems primarily stem from combined efficiency throughout Apple’s lineup. It will not shock you to listen to that the iPhone 14 debut helped gas the corporate’s cell income ($42.6 billion versus final summer season’s $38.9 billion), however different segments had been risky. Whereas the MacBook Air M2 helped Mac income bounce 25 p.c to $11.5 billion, iPad gross sales dropped sharply — they fell to only beneath $7.2 billion versus almost $8.3 billion a yr earlier. And whereas providers like Apple Music and TV+ set a brand new report of $19.2 billion, that is solely a mediocre bump versus the $18.3 billion from a yr in the past. Gross sales for the Apple Watch and good dwelling units grew solidly from $8.8 billion to $9.7 billion.
The shopper base seems to be robust, at the very least. Throughout Apple’s earnings name, CFO Luca Maestri famous that roughly half of Mac and iPad consumers had been new to the platform. The corporate additionally touted an all-time (however unspecified) excessive for the variety of lively units. CEO Tim Cook dinner added that cellphone gross sales had been robust regardless of tight provide constraints for the iPhone 14 Professional and Professional Max.
The autumn (Apple’s first fiscal quarter of 2023) may very well be rosier. Apple launched new iPads in October this yr the place it launched up to date fashions in September final yr, so we would count on a bump in gross sales for the pill lineup. Cook dinner added that final yr was “unusually robust” because of the iPad Pro M1 launch. The iPhone 14 household had additionally been accessible for simply eight days in the course of the fourth quarter, so general iPhone gross sales ought to enhance.
Apple is not out of bother but. It is nonetheless hiring extra cautiously, and provide points (together with for the Apple Watch Ultra, Cook dinner says) might canine the corporate for some time. It is also unclear how folks will take to units just like the iPhone 14 Plus, which did not ship till this month. All the identical, Apple could also be joyful. The pc market tanked 19.5 p.c in the course of the quarter, based on Gartner estimates, whereas Canalys believes smartphone shipments dropped 9 p.c. If these figures are moderately correct, Apple is prospering just by avoiding sharp declines in most classes.
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