Apple, the world’s most valuable company, has announced its financial results for the fourth quarter of fiscal 2023, which ended on September 30, 2023. The company posted quarterly revenue of $89.5 billion, down 1 percent year over year, and quarterly earnings per diluted share of $1.46, up 13 percent year over year. Despite the slight decline in revenue, Apple beat analysts’ expectations of $89.03 billion in revenue and $1.39 in earnings per share.
iPhone revenue sets September quarter record
The highlight of the quarter was the strong performance of the iPhone, which generated $43.8 billion in revenue, up from $42.6 billion in the same quarter last year. This was the highest revenue ever for the iPhone in a September quarter, driven by the popularity of the iPhone 15 lineup, which was launched in mid-September. The iPhone 15 models feature a new design, a faster A16 chip, improved cameras, and a 120Hz ProMotion display on the Pro models. Apple’s CEO, Tim Cook, said that the iPhone 15 series has started off much better than the iPhone 14 series.
Services revenue reaches new all-time high
Another bright spot for Apple was the services segment, which includes revenue from the App Store, Apple Music, Apple TV+, iCloud, Apple Pay, and other services. The services revenue reached a new all-time high of $19.6 billion, up from $18.3 billion in the same quarter last year. Cook attributed the growth to the strength of Apple’s ecosystem and the unparalleled customer loyalty. He also mentioned that the active installed base of devices has again reached a new all-time high across all products and all geographic segments.
Mac and iPad revenue decline due to supply constraints
On the other hand, the Mac and iPad segments saw a significant decline in revenue, mainly due to the supply chain challenges caused by the global chip shortage and the COVID-19 pandemic. The Mac revenue was $7.6 billion, down 34 percent year over year, while the iPad revenue was $6.4 billion, down 18 percent year over year. Apple’s CFO, Luca Maestri, said that the supply constraints affected both the production and the demand of the Mac and iPad products, resulting in lower sales and higher inventory levels. He also said that the company expects the supply issues to continue in the next quarter.
Apple’s environmental and social initiatives
Apart from the financial results, Apple also highlighted its environmental and social initiatives during the quarter. The company announced that it has achieved carbon neutrality for its global corporate operations, and that it is on track to make all its products and supply chain carbon neutral by 2030. The company also launched its first carbon neutral Apple Watch models, the Apple Watch Series 8 and the Apple Watch SE, which use 100 percent recycled aluminum and 100 percent renewable energy for their production. Moreover, the company donated $10 million to the American Red Cross to support the relief efforts for the victims of Hurricane Ida, and pledged $5 million to support the education and economic opportunities for women and girls in Afghanistan.
Conclusion
Apple’s fourth quarter results showed that the company is still able to deliver strong growth and profitability, despite the challenging market conditions and the competitive pressures. The company’s diversified portfolio of products and services, its loyal customer base, and its innovation and social responsibility are the key factors that differentiate it from its rivals and ensure its long-term success. Apple’s outlook for the next quarter is optimistic, as the company expects to generate revenue between $90 billion and $95 billion, and gross margin between 39 percent and 40 percent. The holiday season is usually the busiest and most profitable period for Apple, and with its new products and services, the company is well-positioned to capture the demand and delight its customers.
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