Apple Reports Better-Than-Expected iPhone Sales for Fiscal Q2 2023

Tech Giant on Thursday, May 4 Apple Inc (NASDAQ: AAPL) reported earnings for the second fiscal quarter (Q2 2023) that beat Wall Street’s expectations. Tech Giant Beats Street Estimates With Apple CEO Tim Cook adding that iPhone sales were “better than we expected” for the previous quarter.

However, the company reported a decline in total sales for the second consecutive quarter. During extended trading hours on Thursday, May 4, AAPL’s share price increased by 2.5%. Apple’s earnings per share came in at $1.52, versus expectations of $1.43. Also, the company’s revenue was $94.84 billion versus the expected $92.96 billion.

However, the company’s net income in the last quarter stood at $24.16 billion as against $25.01 billion in the year-ago period. Although Apple managed to exceed revenue expectations thanks to its iPhone sales, it saw a decline in revenue coming from the Mac and iPad.

Again, Apple did not provide any formal guidance, a practice it has continued since the COVID-19 pandemic and the beginning of 2020. In a call with analysts, Apple’s finance chief Luca Maestri said the company is expecting a decline in overall revenue. 3% in the current quarter. He couple,

“We expect our June quarter year-to-date revenue performance to be similar to the March quarter, assuming the macroeconomic outlook does not deteriorate from what we are presenting today for the current quarter”.

Luca further said that amid the challenging macro environment, Apple’s services businesses such as digital advertising and mobile gaming have gained momentum.

Apple in Q2 2023: iPhone leads, Mac and iPad sales slow

Better-than-expected iPhone sales came to Apple’s rescue in delivering strong revenue numbers. While the broader smartphone industry declined by 15%, demand for iPhones remained strong.

In the quarter ended April 1, iPhone revenue rose 2%, suggesting supply chain and parts shortage issues have abated. Speaking to CNBC’s Steve Kovach, Apple chief Tim Cook said that “it was a pretty good quarter from an iPhone perspective, especially relative to the market when you look at the market statistics”.

Apple’s Mac and iPad businesses, on the other hand, haven’t fared equally well. Apple Mac sales were down 31% to over $7.17 billion. Cook explained:

“There’s really two reasons for that. One is the macro situation in general. And the other is where we’re still comparing the M1 MacBook Pro 14 and 16-inch to the year-ago quarter.

Similarly, the revenue number from iPad sales was down 13% to $6.67 billion. On the other hand, Apple’s services business which includes Apple’s App Store, warranty and search licensing, and monthly subscriptions saw 5.5% growth year-over-year.

Tim Cook also shared about Apple’s growth in India, where the company recently launched the first Apple Store in Mumbai last month. But expected linesApple’s board also authorized share repurchases and dividends worth $90 billion.

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Bhushan is passionate about Fintech and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in the process of continuous learning and keeps motivating himself by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and occasionally explores his culinary skills.