AAPL reports Q3 2023 earnings: $81.8 billion revenue, iPhone sales dip

Amid concerns from analysts about the possibility of a major drop in revenue, Apple has officially reported its earnings for fiscal Q3 2023. 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.

Apple also revealed that it now has over one billion paid subscribers, while its installed base of active devices also hit a new all-time high.

AAPL Q3 2023 earnings details

Following the usual pattern, Apple’s Q3 2023 earnings release comes as attention is on the forthcoming iPhone 15 release in September. In general, the company sees a slowdown in iPhone revenue for Q3 as more customers hold out to buy the newest model of iPhone in September. In terms of new products released in Q3 2023, Apple unveiled the 15-inch MacBook Air, the new M2 Mac Studio, and the first-ever Apple Silicon Mac Pro.

For the quarter, analysts anticipated revenue of $81.69 billion and earnings-per-share of $1.19. In comparison to the same quarter last year, revenue was down slightly from $83.0 billion, while net profit was up from $19.4 billion.

Apple no longer reports unit sales for any of its products but instead reports a breakdown of revenue by product category. Here is the full breakdown for the fiscal Q3 2023, compared to analyst estimates.

  • iPhone: $39.67 billion ($39.9 billion estimated)
  • Mac: $6.84 billion ($6.6 billion estimated)
  • iPad: $5.79 billion ($6.4 billion estimated)
  • Wearables, Home, and Accessories: $8.28 billion ($8.4 billion estimated)
  • Services: $21.21 billion ($20.8 billion estimated)

Apple CEO Tim Cook had this to say about the company’s earnings for Q3 2023:

We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone,” said Tim Cook, Apple’s CEO. “From education to the environment, we are continuing to advance our values, while championing innovation that enriches the lives of our customers and leaves the world better than we found it.

While Apple CFO Luca Maestri added:

Our June quarter year-over-year business performance improved from the March quarter, and our installed base of active devices reached an all-time high in every geographic segment.

During the quarter, we generated very strong operating cash flow of $26 billion, returned over $24 billion to our shareholders, and continued to invest in our long-term growth plans.

You can read Apple’s full earnings release in this post on Apple Newsroom. Stay tuned to 9to5Mac for more coverage from the AAPL earnings call with Tim Cook and Luca Maestri next. You can also listen live via the company’s Investor Relations website at 2:00 pm PT/5:00 pm ET.

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