Yesterday’s earnings report revealed mixed news for AAPL Q3 2023, starting with a fair chunk of bad news.
Jason Snell has done his usual sterling work in transforming all the numbers into a series of colorful charts, letting us see all the key information at a glance …
AAPL Q3 2023 earnings report
Apple started with the headline numbers.
AAPL reported revenue of $81.79 billion, down 1% year-over-year, and earnings-per-share of $1.26. Profit for the quarter came in at $19.88 billion, up 5% year-over-year.
Revenue was almost exactly what analysts had predicted, though there were some disappointments, as we’ll see.
Revenue change
Pessimists would note that revenue was down year-on-year, and that this was true for the third quarter in a row. But the year-on-year revenue change chart paints a fuller picture.
We can see here that the trend is headed in the right direction – though Apple itself isn’t committing to a return to growth, suggesting that Q4 will be similar to Q3.
Hardware revenue down
There’s more concerning news in the key hardware revenue streams, with Mac down 7%, iPad down 20%, and iPhone down 2%.
Apple CEO Tim Cook and CFO Luca Maestri both pointed to the strength of the installed base of active devices, and the Services revenue this generates. We can see this reflected in the revenue split between different business segments.
Looking ahead, Maestri said yesterday that Apple was expecting the current quarter to be similar, so roughly flat year-on-year.
We expect our September quarter year-over-year revenue performance to be similar to the June quarter, assuming that the macroeconomic outlook doesn’t worsen from what we are projecting today for the current quarter.
As ever, check out the full set of charts over at Six Colors.
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