Apple earlier today posted its earnings report for the recent March quarter. And when the dust settled, Apple posted revenue of $94.8 billion and earnings of $1.52 per share. As a point of comparison, Apple during the same quarter last year posted revenue of $97.28 billion and earnings of $1.52 per share. Profit-wise, Apple for the quarter took home $24.16 billion, a slight decline from the $25.01 in profits it generated during the March 2022 quarter.
Ahead of Apple’s earnings report, investors were anticipating revenue of $92.6 billion. Investors were also anticipating Apple to deliver earnings of $1.43 per share. As always, it’s worth noting that Apple’s EPS gets a little bit of a boost from the company’s ongoing and and aggressive share buyback program. All told, Apple’s quarterly revenue was down, but not by as much as some were anticipating.
As has been the case for a few years now, Apple doesn’t release specific sales figures across its product line. Still, the company does provide us with how much revenue each of its products generates every quarter.
To this end, revenue from the iPhone during the March quarter brought in $51.3 billion, which is a record for Q2. This compares to $50.5 billion in iPhone-based revenue during the year-ago quarter. Analysts, meanwhile, were predicting that iPhone revenue would fall somewhere in the $48.9 billion range.
Services revenue checked in at a record-breaking $20.9 billion, compared to $19.8 billion during the March 2022 quarter. Meanwhile, Mac and iPad revenue for the quarter checked in at $7.1 and $6.6 billion, respectively. As a point of comparison, Mac revenue last year was $10.4 billion while iPad-based revenue was $7.6 billion. And lastly, Apple’s wearables division accounted for $8.75 billion in revenue, compared to $8.8 billion in the March 2022 quarter.
Tim Cook said the following in an Apple press release:
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.
All told, Apple’s Q2 2023 earnings report wasn’t as strong as its Q2 earnings last year. Still, the company generated more revenue across its product line than many analysts were expecting.
Apple’s board of directors also authorized an “additional program to repurchase up to $90 billion” in Apple shares. Alongside that, the board also authorized a very slight increase in the company’s quarterly dividend. The dividend now stands at $0.24 per share, which is just a penny more than the previous dividend amount of $0.23.
Another tidbit worth sharing is that R&D expenses in Q1 and Q2 of 2023 came in at nearly $3 billion more than R&D during the same period in 2022. It’s just speculation, but it may have something to do with Apple’s rumored AR headset that may be unveiled at WWDC next month.
Shares of Apple are now up nearly 2 points in after hours trading.