Apple tops revenue and earnings, expecting growth to accelerate despite’softness’


Despite exceeding Wall Street’s sales and profit estimates, Apple’s third-quarter fiscal figures, released on Thursday, revealed a declining growth rate for the iPhone manufacturer.

image credits: flipboard

In after-hours trading, shares of Apple soared by more than 3%.

The following are the most important figures in relation to Wall Street’s expectations, as estimated by Refinitiv:

  • Earnings per share: $1.20 vs. $1.16 expected, an 8% drop in year-over-year comparison
  • Revenue: $83 billion, compared to the projected $82.81 billion, a 2% increase over the previous year.
  • In comparison to the $38.33 billion forecasted, iPhone revenue was $40.67 billion, an increase of 3% year-over-year.
  • $19.60 billion vs. $19.70 billion, up 12 percent year-over-year in services revenue
  • Revenue from Other Products was $8.08 billion, 8% lower than the expected $8.86 billion.
  • Mac revenue: $7.38 billion vs a projected $8.70 billion, a 10% drop from the previous year.
  • iPad sales: $7.22 billion vs a projected $6.94 billion, a 2 percent drop from last year.
  • (43.26%) vs. (42.61%) estimated: gross margin
  • Apple did not issue any official forecasts for the current quarter. Analysts predicted that the business will provide estimates for fourth-quarter profits per share of $1.31 and sales of roughly $90 billion.

However, “we expect revenue to grow in September quarter despite seeing some pockets of slowness,” Apple CEO Tim Cook told CNBC’s Steve Kovach.

Apple’s revenue increased by 2% in the third quarter, compared to a 36% year-over-year increase and an increase of nearly 8% in the March quarter. It was a “difficult operating environment,” according to CFO Luca Maestri, who stated the results were better than projected.

Chipmakers and other computer suppliers have indicated that demand for smartphones and PCs is falling throughout the world as customers face recession worries and decades-long inflation. Apple’s sluggish growth might portend a period of stagnation for the consumer electronics sector as a whole, including market leaders like Apple.


Although the firm is witnessing inflation, Cook said it plans to continue making investments.

Cook said that the company’s cost structure was experiencing inflation. While we are currently employing, we are doing so on purpose, since we can see it in areas such as logistics, pay, and specific silicon components.

Demand for iPhone 13 models is still high even in the second part of its yearly release cycle, as seen by Apple’s iPhone sales exceeding Wall Street projections. Customers wait impatiently for Apple’s new iPhones, which are usually released in September.


During the quarter, Cook claimed Apple had a lot of success converting Android users to iPhone owners.

“We experienced a record amount of switchers and witnessed double digit growth for consumers who had never used an iPhone before,” Cook added.

Apple’s Services division grew at the quickest rate throughout the quarter. Monthly subscriptions, payment costs, warranties, Google search licence fees, and earnings from the iPhone App Store are all included.


As opposed to the second quarter’s 17 percent expansion and last year’s 27% expansion, services gained over 12 percent in the most recent three months of the current year.

For the purposes of this statement, Apple CEO Tim Cook stated that the company now has 860 million paying subscribers, including those who subscribe to apps offered on the App Store as well as services like Apple Music and iCloud.

Year-over-year, Mac sales fell almost 10% shy of market predictions. Cook blamed supply difficulties and the strong dollar for the decline in sales.


After Apple said that it would lose $4 billion to $8 billion in revenue because of a components shortage in April, the company’s website displayed longer shipment times for many Mac models during the quarter. In the end, Cook estimated that the loss was less than $4,000,000,000,000.

During the month of June, Apple also unveiled new MacBook Air models, although they didn’t begin arriving until July. Apple’s MacBook Air is the company’s most popular laptop.

Apple’s iPad had a 2% drop in yearly sales, but outperformed Wall Street expectations because analysts expected Apple to prioritise iPad tablets above other products in the face of a chip scarcity. According to Cook, supply issues and a strong currency are to blame for the iPad’s fall.


It was a disappointing year for Apple’s other product category, which includes AirPods and Apple Watches as well as the HomePod speaker.

For the year, Apple’s revenue in Greater China, which includes Taiwan and Hong Kong, fell 1%. That accomplishment, according to Cook, was achieved despite significant Covid limitations that impeded demand.

Apple’s gross margin was higher than it had anticipated in April. Apple’s gross margin came in at 43.26 percent, much over the 42 to 43 percent range the firm had previously projected.


In the first three months of the year, Apple claimed it spent $28 billion on share buybacks and dividends.

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