Apple has reported latest quarterly revenue of $94.8 billion, down 3% from a year ago, which is better than the expectations. It posted a net profit of $24.2 billion, down 3% YoY and quarterly earnings per diluted share of $1.52 for the financial year Q2 2023 that ended April 1, 2023.
During the earnings call, Apple CEO Tim Cook said that the company has posted an all-time record for services and a March quarter record for iPhone.
It achieved all-time records in Mexico, Indonesia, the Philippines, Saudi Arabia, Turkey and the UAE, as well as a number of March quarter records, including in Brazil, Malaysia and India.
Regarding business in India, Apple CEO said:
There are a lot of people coming into the middle class, and I really feel that India is at a tipping point.
Apple CFO Luca Maestri said that foreign exchange had a negative impact of over five percentage points on its results, in line with what Apple had expected. He said that Apple has also set March quarter records in Australia, Canada, Spain and Switzerland, among others.
- Products revenue was $73.9 billion, down 5% over last year, due to challenging compares on Mac and iPad. iPhone, however, reached a March quarter revenue record thanks to very strong performance in emerging markets from South Asia and India to Latin America and the Middle East.
- Services set an all-time revenue record of $20.9 billion, up 65over a year ago.
- All-time services revenue record in Greater China and March quarter records in Americas, Europe and Rest of Asia Pacific.
- iPhone revenue was $51.3 billion, up 2% YoY, setting a new March quarter record and March quarter records in several developed and emerging markets with India, Indonesia, Turkey and the UAE doubling on a year-over-year basis.
- iPad revenue was $6.7 billion, down 13% YoY since it launched iPad Air powered by the M1 chip in the same quarter a year ago and headwinds from the macroeconomic environment
- Mac revenue was $7.2 billion, down 31% YoY since it launched M1 MacBook Pros in the same quarter a year ago and challenging macroeconomic
- Wearables, Home and Accessories revenue was $8.8 billion, down 1% YoY due to impact from the macroeconomic environment
- More than 975 million paid subscriptions across the services, which is up more than 150 million during the last 12 months alone.
- Installed base of over 2 billion active devices.
Speaking on Apple’s FY Q2 2023 earnings results, Apple CEO, Tim Cook, said,
Our year-over-year business performance improved compared to the December quarter, and we generated strong operating cash flow of $28.6 billion while returning over $23 billion to shareholders during the quarter
Given our confidence in Apple’s future and the value we see in our stock, our Board has authorised an additional $90 billion for share repurchases. We are also raising our quarterly dividend for the eleventh year in a row.