{"id":37490,"date":"2022-10-28T16:16:00","date_gmt":"2022-10-28T20:16:00","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=37490"},"modified":"2022-11-03T15:49:01","modified_gmt":"2022-11-03T19:49:01","slug":"apples-q4-2022-results","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2022\/10\/28\/apples-q4-2022-results\/","title":{"rendered":"Apple’s Q4 2022 Results"},"content":{"rendered":"

Apple<\/a> (transcript<\/a>, Hacker News<\/a>):<\/p>\n

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The Company posted a September quarter record revenue of $90.1 billion, up 8 percent year over year, and quarterly earnings per diluted share of $1.29, up 4 percent year over year. Annual revenue was $394.3 billion, up 8 percent year over year, and annual earnings per diluted share were $6.11, up 9 percent year over year.<\/p>\n

[…]<\/p>\n

“We continued to invest in our long-term growth plans, generated over $24 billion in operating cash flow, and returned over $29 billion to our shareholders during the quarter. The strength of our ecosystem, unmatched customer loyalty, and record sales spurred our active installed base of devices to a new all-time high. This quarter capped another record-breaking year for Apple, with revenue growing over $28 billion and operating cash flow up $18 billion versus last year.”<\/p>\n<\/blockquote>\n\n

Jason Snell<\/a>:<\/p>\n

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Mac revenue was way up (to an all-time record!), iPad revenue was flat sequentially but down year-over-year, iPhone revenue was up, services revenue was down sequentially for the second straight quarter, and wearables returned to its winning ways.<\/p>\n<\/blockquote>\n\n

Michael E. Cohen and Josh Centers<\/a>:<\/p>\n

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Let’s start with the Mac, which saw a phenomenal 25.4% year-over-year revenue increase, marking an all-time revenue record for Macs. The Mac has never been stronger, thanks to Apple silicon, bringing in $11.5 billion in revenue in Q4.<\/p>\n

[…]<\/p>\n

The iPhone realized 9.7% growth over the past year, amounting to $42.6 billion in revenue. That level of growth was still sufficient for a September quarter revenue record.<\/p>\n

[…]<\/p>\n

For years, Services has fueled Apple’s continued growth, but that wasn’t the case this quarter: revenues increased by just 5% over the past year, bringing in $19.2 billion. As with other sales categories, Maestri blamed the strong dollar and weaker foreign currencies for the relatively small increase in Services revenue. However, Services revenue still broke its Q4 record, and Maestri mentioned that Apple has over 900 million paying subscribers now, implying a revenue stream that is both sizable and stable. When asked, Cook refused to link the decline in revenue growth to Apple’s recent service price hikes. Instead, he repeated the company’s previous explanation of increased music licensing costs and costs related to the growth of the Apple TV+ library.<\/p>\n<\/blockquote>\n\n

Nick Heer<\/a>:<\/p>\n

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No matter how big Apple gets, it is still a little surprising to me every time the company announces that half its Mac buyers are new.<\/p>\n<\/blockquote>\n\n

I’ve never quite known how to interpret this. Is that high or low compared with other companies? It can’t indicate a trend if Apple’s been saying the same thing for so long. Obviously, it doesn’t mean that sales are growing 50% per year. Does a high percentage of new buyers mean that Macs last a long time? Or that there’s a lot of churn?<\/p>\n\n

Ben Bajarin<\/a>:<\/p>\n

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Thanks to an entirely new enterprise dynamic, in the cloud\/digital-first world, I believe Apple is on the cusp of seeing the Mac finally cross the enterprise chasm and formally be embraced by every modern organization.<\/p>\n<\/blockquote>\n\n

John Voorhees<\/a>:<\/p>\n

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Despite some areas of softness, the results reported by Apple were positive overall, especially compared to other recent earnings misses in the tech world. Yesterday, Meta announced a significant earnings miss that led to a nearly 25% drop in its stock price today. Then today, Amazon came up short compared to Wall Street expectations leading to a 16% dip in its stock price.<\/p>\n<\/blockquote>\n\n

Previously:<\/p>\n