Apple Revenue Eased Again Last Quarter As Rising Services & IPhone Sales Couldn’t Offset Dips Elsewhere; Investors Await Commentary Around IPhone 15, China


The world’s most valuable company saw another revenue dip with sales down about 1% at $89.5 billion (a hair above Wall Street expectations) for its fiscal fourth quarter.

EPS at $1.46 was up 13% percent year-on-year for the three months ended in September, also a beat. But investor had hoped for a bit more from the tech giant, which reported after the bell and saw its shares dip in late trading. Apple stock had previously closed up on the day and has seen a massive run this year.

Revenue from iPhones, about half of Apple‘s total business, was $43.8 billion, up from $42.6 billiion. The September quarter includes about a week or so of new iPhone 15 sales. Mac and iPad sales fell.

Services, the fast-growing division that houses Apple TV+ alongside Apple Music, Apple Fitness, Apple Arcade, Apple Podcasts, Apple Books, Apple Cloud and the Apple App Store among others – saw sales of $22.3 billion, up from $19.2 billion last year.

Apple late month raised the price of a handful of subscription services led by Apple TV+, which will now cost $9.99, up from $6.99. An annual subscription moves from $69 to $99. Apple News+, Apple Arcade gaming and Apple One bundles will see prices rise n the U.S. and select international markets. Announcing the move, Apple said it’s “focused on delivering the best experiences possible for our customers by consistently adding high-quality entertainment, content, and innovative features to our services.

Earnings are hitting with the company in the midst of a major original theatrical film push. Martin Scorsese’s Killers Of The Flower Moon with Paramount releasing, which premiered at Cannes, has grossed $43 million domestic ($87 million worldwide) since its Oct. 20 release. Napoleon by Ridley Scott and starring Joaquin Phoenix hits theaters Nov. 22 through Sony Picture Releasing and is set to open the Thanksgiving frame at $24 million.

Apple TV+ saw all time viewership earlier this year with Ted Lasso, Silo and The Last Thing He Told Me. It’s currently rolling out Season 3 of popular The Morning Show.

“Today Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in Services,” said CEO Tim Cook. “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.”

“Our active installed base of devices has again reached a new all-time high across all products and all geographic segments, thanks to the strength of our ecosystem and unparalleled customer loyalty,” added CFO Luca Maestri. “During the September quarter, our business performance drove double digit EPS growth and we returned nearly $25 billion to our shareholders, while continuing to invest in our long-term growth plans.”

Exes will address investors on a call at 5 ET.

Investors are focused on its outlook for iPhone in the current quarter, which is usually Apple’s largest with the holiday shopping season. Apple had warned in August that it expected Mac and iPad revenue to decline on difficult comparisons to a strong 2022 quarter when sales popped after prior supply issues.

The company earlier this week unveiled that new chips that will power its personal computers.

Investors have also been jittery around China, including competition from Huawei, Apple’s Chinese rival, and the a government’s investigation of Apple’s Chinese manufacturing partner Foxconn amid reports that the state is looking to ban foreign technology from government agencies.

Products You May Like

Articles You May Like

The Bear Season 3 Trailer Brings Us Back Into Carmy’s “Dysfunctional” Kitchen
‘Selling the OC’ Sean Palmieri Fires Back at Ex-Castmates, Villain Label
Sports Emmys: Super Bowl & ‘Toy Story Funday Football’ Lead The League
Caleb Carr Dies: Author Of Bestselling ‘The Alienist’ Was 68
‘Sex and the City’ Cynthia Nixon Says Trolls Called Cast ‘Gay Men in Disguise’

Leave a Reply

Your email address will not be published. Required fields are marked *