Apple’s Q1 2023 Results
Apple (transcript, Hacker News, MacRumors):
The Company posted quarterly revenue of $117.2 billion, down 5 percent year over year, and quarterly earnings per diluted share of $1.88.
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“We set an all-time revenue record of $20.8 billion in our Services business, and in spite of a difficult macroeconomic environment and significant supply constraints, we grew total company revenue on a constant currency basis,” said Luca Maestri, Apple’s CFO.
Again, total profit was the second-most ever at $30 billion but it’s down from last year.
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By all accounts, Apple originally intended to have new MacBook Pro and Mac mini models ready to go during this quarter, but those releases were delayed until this month. With no new Macs in the offing at all, Mac sales took a big hit, down 29 percent year-over-year.
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Honestly, given that Apple warned of iPhone production problems that would prevent the company from meeting demand, being down only 8% year over year strikes me as being a bit of a relief.
Since the iPad is taking a victory lap, let me hit you with a few other iPad tidbits. It’s the first time the iPad has sold better than the Mac in a quarter in seven years. And it’s the biggest iPad quarter by revenue in nine years. The iPad is, at this point, basically a $32 billion a year business for Apple, when just a few years ago, it looked like it might be worth $20 billion at most. Sure, we might look at that janky Apple Pencil adapter on the 9th-generation iPad and at the aging design of the iPad Pro and wonder what’s up with the hardware design, but the numbers don’t lie.
The year-over-year decline was driven by multiple factors, including:
- Shortages of iPhone 14 Pro and Pro Max caused by COVID lockdowns in China
- Soft consumer demand resulting from worldwide inflationary pressure
- Adverse effects caused by foreign currency exchange rates
Although Apple did not forecast results for Q1 2023 during its last earnings call, the company warned in November that production disruptions would impact shipments, so the declines today should not be a shock.
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