Photo: Ann Wang / reuters
Rest assured, the company continues to generate staggering profits.
Apple’s financial performance in the fiscal Q3 2023 has seen minor declines in revenue, continuing the trend observed in the previous two quarters. However, these declines are insignificant for a company that continues to generate significant profits every quarter. Despite the overall slump, Apple’s Services segment, which includes paid iCloud plans, Apple Music, AppleCare, the App Store, and other offerings, reached an all-time high revenue of $21.2 billion. This category stands as the second-largest product segment for Apple, growing by eight percent compared to the previous year. On the other hand, iPhone, Mac, and iPad revenue all experienced declines compared to the same period last year. The decline in iPhone revenue was marginal, with a two percent drop to $39.7 billion. Meanwhile, iPad sales dropped by 19.8 percent, and Mac sales decreased by 7.3 percent. The lack of recent iPad hardware updates explains the decline in iPad sales to some extent. However, the Wearables category, which includes the Apple Watch and AirPods, experienced a slight revenue growth of just over two percent, making it the only product category, alongside Services, to exhibit growth. Overall, Apple reported revenues of $81.8 billion, representing a less than two percent decline year over year, while profits increased by about two percent to $19.9 billion.
Apple’s earnings call, scheduled for 5PM ET, is expected to cover more than the company’s usual product categories. This will be the first earnings call since Apple announced its ambitious and costly Vision Pro headset, making it likely that investors will seek updates on the progress of this new product. Additionally, there is speculation surrounding potential AI-related projects that Apple may be developing, which could be addressed during the call. As the call progresses, we will provide updates on any details shared by CEO Tim Cook.