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Apple posts Q3 earnings as revenue falls slightly to $81.8 billion

Published Aug 3rd, 2023 4:32PM EDT
Apple India

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Apple on Thursday posted its earnings for the recent June quarter. When the dust settled, the company posted $81.8 billion in revenue, $19.9 billion in quarterly profits, and EPS of $1.26.

Ahead of Apple’s earnings report, analysts were anticipating revenue to fall in the range of $81.7 billion with EPS coming in at around $1.19. As a point of comparison, Apple during the same quarter a year ago posted revenue of $83 billion and earnings of $1.20 a share. With that said, Apple saw its quarterly profit rise ever so slightly even though revenue dropped by $1.2 billion.

Incidentally, it’s worth noting that Apple’s EPS sees a nice boost every quarter due to the company’s ongoing and somewhat massive stock buyback program. All told, Apple over the last 10 years has spent upwards of $573 billion on stock buybacks.

“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,” Tim Cook said in a press release.

Per usual, the focal point of Apple’s earnings centers on iPhone revenue. Recall that Apple for some time now has opted to not release sales figures across each of its product lines. Still, it’s possible to gauge the vibrancy of Apple’s individual products by taking a look at how much money they bring in.

For the quarter gone by, iPhone-based revenue checked in at $39.6 billion compared to $40.6 billion during the same quarter a year ago. That amounts to about a 2% drop year over year, which is in line with analyst estimates.

Meanwhile, Mac revenue and iPad revenue checked in at $6.84 billion and $5.79 billion, respectively. As a point of comparison, Mac and iPad revenue in Q3 of 2022 came in at $7.3 and $7.2 billion. That’s a respective drop of 7% and 20%.

Revenue from Apple’s Wearables, Home and Accessories categories increased slightly from $8.08 billion in Q3 2022 to $8.2 billion during the most recent June quarter. And as highlighted by Tim Cook above, Apple’s Services revenue hit an all-time high of $21.2 billion for the quarter.

Notably, revenue was down in the Americas, Japan, and the rest of the Asia Pacific. Revenue, however, was up in Europe and Greater China.

All told, Apple slightly bested analyst expectations, though it’s worth noting that analysts were expecting a tepid earnings report. Additionally, Apple will pay out a dividend to shareholders of record on August 17.

Shares of Apple are down 3 points in after-hours trading.

Yoni Heisler Contributing Writer

Yoni Heisler has been writing about Apple and the tech industry at large with over 15 years of experience. A life long expert Mac user and Apple expert, his writing has appeared in Edible Apple, Network World, MacLife, Macworld UK, and TUAW.

When not analyzing the latest happenings with Apple, Yoni enjoys catching Improv shows in Chicago, playing soccer, and cultivating new TV show addictions.