Apple has announced financial results for its fiscal 2023 third quarter that ended July 1, 2023. The company posted quarterly revenue of $81.8 billion, down 1% year-over-year, and quarterly earnings per diluted share of $1.26, up 5% year-over-year.
CEO Tim Cook and Chief Financial Officer Luca Maestri discussed the financial results during a conference fall with the media and analysts. Here are some highlights:
° The company’s total sales dropped from almost $83 billion in the June 2022 quarter to just under $82 billion this year.
° However, Apple’s profit increased from $19.4 billion to $19.9 billion thanks to an increase in the Services division, whose performance helped offset the drop in hardware sales. Services grew 8% year-over-year.
° Speaking of Services, ads, app stores and Apple Music Apple set June quarter records. Apple has hit a milestone of one billion paid subscriptions across its Services and App Store segments.
° iPhone revenue was $39.7 billion, down 2% year-over-year. The active installed based grew to an all-time high.
° Mac sales were down 7% year-over-year. Still, the computer made $6.9 billion in revenue. That’s actually an improvement, as Mac revenue dropped 31% in the March quarter.
° Fifty-percent of those buying Macs are new to the platform (I have to point out that Apple says this EVERY time new financials are announced).
° iPad venue in the April-to-June period was $5.8 billion, down 20% year-over-year.
° For September, Apple expects Mac and iPad sales to see double-digit dips from the same period in 2022, but thinks iPhone revenue will improve. Why the dip in computer and tablet sales? There was “an unusual amount of activity a year ago.”
° The Wearables segment was up 2% year over year. Two-thirds of those buying an Apple Watch were new users of the product.
° Apple saw sales growth in its European and Greater China geographic segments. Conversely, sales growth in the Americas, Japan, and AsiaPac slipped slightly.
° Apple now has an installed base of two billion (and growing) active devices.
Apple’s board of directors has declared a cash dividend of $0.24 per share of the Company’s common stock. The dividend is payable on August 17 to shareholders of record as of the close of business on August 14.
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