Apple’s revenue declined again in the March 2023 quarter, marking its second consecutive quarterly drop in sales. But the tech giant topped Wall Street forecasts, with its services business hitting a new record for revenue and iPhone sales showing unexpected strength.
The company reported revenue of $94.8 billion, down 3%, and net income of $24.2 billion ($1.52 per diluted share), a 3.4% year-over-year drop, for the quarter ended April 1, which is Apple’s Q2 of fiscal 2023. Financial analysts expected revenue of $92.96 billion and earnings of $1.43 per share for the quarter, per Refinitiv data.
Apple’s Services revenue rose 5.5%, to $20.9 billion, edging above $20.8 billion for the year-end 2022 quarter. The segment includes the App Store, Apple Pay, and subscription services such as Apple TV+, Apple Music and iCloud.
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Analysts had expected sales of Apple’s flagship iPhones to decline about 4% — but smartphone sales were up 1.5% year over year, to $51.3 billion. Dragging down the company’s top line were its Mac unit, with sales down 31% to $7.2 billion, and iPad, which saw revenue drop 13% to $6.7 billion.
“We are pleased to report an all-time record in Services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” CEO Tim Cook said in announcing the March quarter results. “We continue to invest for the long term and lead with our values, including making major progress toward building carbon neutral products and supply chains by 2030.”
Apple also announced that its board authorized an additional $90 billion for share repurchases and declared a cash dividend of 24 cents per share (an increase of 4%).
Next month Apple is hosting its annual Worldwide Developers Conference (WWDC) in Cupertino, Calif. The event, which runs June 5-9, is rumored to feature the company’s long-awaited mixed-reality headset, reportedly dubbed the Reality Pro.
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