Apple Reports Q3 2023 Financial Results: Revenue of $89.5 Billion, Down 1%; Net Profit of $22.9 Billion, $1.46 per Share, Up 13%.
In the final month of the quarter, Apple introduced its new lineup of products, including the iPhone 15 and the latest Apple Watch.
The iPhone achieved record-breaking sales of $43.8 billion, a 3% increase, solidifying its position as the company’s top-selling product. Similarly, the Services business hit a new milestone with revenue of $22.3 billion, a 16% increase. On the other hand, Mac sales declined by 34% to $7.6 billion, while iPad sales decreased by 10% to $6.4 billion. The Wearables, Home, and Accessories category experienced a slight decrease of 3%, generating $9.3 billion in revenue.
During an interview with CNBC, CEO Tim Cook revealed that the iPhone 15 outsold the iPhone 14 during the same period after its launch. He also mentioned that there was a supply shortage for the Pro and Pro Max models due to high demand.
In their earnings call with analysts, both Tim Cook and CFO Luca Maestri highlighted several additional noteworthy points:
Apple achieved a new sales record in India, as well as in various other countries, including Brazil, Canada, Indonesia, the Philippines, and Vietnam.
According to the latest StudentMonitor research data, nearly two-thirds of students now choose Mac as their preferred device.
The number of active devices reached an all-time high, covering every geographical region.
The decline in Mac revenue (34%) was a result of exceptionally high sales in the same quarter of the previous year, which couldn’t be sustained due to chip shortages impacting production.
Half of the Mac buyers were new customers, particularly favoring the MacBook Air.
CEO Tim Cook expressed optimism that the newly released Mac M3 would boost sales in the December quarter.
The number of subscription-based accounts exceeded one billion, utilizing various payment platforms.
The December quarter sales estimate is expected to be similar to the previous year, influenced by a shorter quarter compared to 2022.
When questioned about Generative AI, which other companies are heavily investing in, Cook provided no specific details but affirmed that Apple is investing significantly in AI development and has already incorporated these technologies into their products.
Source: Apple and MacRumors
**TLDR: Apple reported Q3 2023 financial results with revenue of $89.5 billion, a 1% decrease, and a net profit of $22.9 billion. The iPhone 15 and new Apple Watch were introduced during the quarter. iPhone and Services achieved record-breaking sales, while Mac and iPad sales declined. CEO Tim Cook acknowledged supply constraints for certain iPhone models. Highlighted points from the earnings call include Apple’s increasing presence in India and other countries, the popularity of Mac among students, strong customer adoption of Apple devices worldwide, and the company’s ongoing investment in AI technology.