apple report second quarter earnings It beat Wall Street’s weak expectations, driven by better-than-expected iPhone sales. Apple CEO Tim Cook told CNBC that the quarter was “better than expected.”
However, Apple’s overall sales declined for the second straight quarter. The tech giant’s shares rose nearly 2% in extended trading and continued to rise as Apple provided forecast data points for the current quarter.
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Here’s how the company performed against Wall Street expectations according to Refinitiv’s consensus forecasts:
- EPS: $1.52 vs. $1.43 per share
- Earnings: $94.84 billion vs. $92.96 billion forecast
- gross profit: 44.3% vs 44.1% expected
Apple reported a net profit of $24.16 billion during the quarter, compared to $25.01 billion in the same period last year. Total revenue was down 3% from his $97.28 billion last quarter.
Here’s how Apple’s individual product lines performed against StreetAccount’s consensus expectations.
- iPhone Earnings: $51.33 billion vs. forecast $48.84 billion
- Mac Earnings: $7.17 billion vs. $7.80 billion forecast
- Earnings on iPad: $6.67 billion vs. $6.69 billion forecast
- Earnings for other products: $8.76 billion vs. $8.43 billion forecast
- Service Revenue: $20.91 billion vs. $20.97 billion forecast
Apple has not provided formal guidance, continuing a practice dating back to 2020 and the start of the Covid-19 pandemic.
Apple’s finance chief Luca Maestri said the company expects overall revenue to decline about 3% this quarter.
“Assuming the macroeconomic outlook does not deteriorate from our forecast for the current quarter, we expect the year-over-year earnings performance in the June quarter to be similar to the March quarter,” Maestri said on a conference call with analysts. there is,” he said. He added that the company faces macroeconomic challenges in digital advertising and mobile games, which are part of Apple’s services business.
IDC estimates that the highlight of Apple’s report was iPhone sales, which grew year over year despite the overall smartphone industry contracting nearly 15% over the same period.
iPhone revenue increased 2% in the quarter ending April 1, suggesting parts shortages and supply chain issues that have hampered the product for the past few years, including iPhone factory shutdowns at the end of last year, are finally over. I’m here.
Cook told CNBC’s Steve Kovac that “from an iPhone standpoint, we had a pretty good quarter, especially when compared to market statistics.”
Apple CEO Tim Cook waves to people at the opening of Apple Inc.’s first flagship store in Mumbai, India on April 18, 2023.
Imtiaz Sheikh | Anadolu Agency | Getty Images
Apple’s Mac and iPad business didn’t take off either. The company warned last quarter that both business segments would decline, partly due to parts shortages, but they were even lower than expected.
Apple’s Mac sales fell more than 31% to just over $7.17 billion. But that’s hard to compare to the same period last year, when his Apple was still benefiting from the end of the pandemic boom in PC sales and the move to proprietary chips that extend laptop battery life.
“There are really two reasons for that,” Cook said. “One is the general macro situation. The other is that we’re still comparing it to the very difficult comparison of the M1 MacBook Pro 14 and 16-inch from the same period last year.”
Revenue from iPad fell nearly 13% to $6.67 billion.
Apple’s services business includes monthly subscriptions, revenue from Apple’s App Store, warranties, and search license revenue from companies such as Google. Apple reported service revenue of $20.9 billion. This was an increase of 5.5% year-on-year, demonstrating continued growth in the company’s highest-margin business line.
Apple’s wearables division, which includes the Apple Watch and headphones like AirPods, fell 1% during the quarter, beating analysts’ expectations. Last fall, the company released a more expensive Apple Watch called the Ultra.
Revenue from Apple’s China regional business, which includes mainland, Taiwan and Hong Kong, fell to $17.81 billion from last year’s $18.34 billion. Analysts expected China’s demand for electronics to increase in the quarter as the company emerges from Covid-era lockdowns and other restrictions.
Sales declined in most regions Apple monitors, but rose to $8.11 billion in the Asia-Pacific region.
Cook was optimistic about Apple’s prospects in India after visiting India last month to open an Apple store and meet with politicians.
“In India, the switcher and first-time buyer metrics look very good,” said Cook. Apple uses the term “switcher” to refer to someone buying his iPhone for the first time previously he had an Android device.
As expected, Apple’s board of directors has approved a $90 billion share buyback and dividend. Apple said it paid $23 billion in share buybacks and dividends in the March quarter. Apple also raised its dividend by 4% to his 24 cents per share.
Cook also said Apple isn’t planning layoffs like other big tech companies have started over the past year. “I see it as a last resort and therefore mass layoffs are not something we are discussing at this time,” he said.
