Apple turns healthy profit despite weak iPad sales

Apple appears to be weathering the monetary storm, albeit with a number of hitches. The corporate reported a document excessive income of $90.1 billion in its fiscal fourth quarter, with a internet revenue of $20.7 billion. Whereas these have been solely slight will increase versus the identical interval final yr (income was up ‘simply’ 8 %), they got here regardless of a tough financial local weather and near-flat income development within the earlier quarter.

The problems primarily stem from blended efficiency throughout Apple’s lineup. It will not shock you to listen to that the iPhone 14 debut helped gas the corporate’s cellular income ($42.6 billion versus final summer time’s $38.9 billion), however different segments have been risky. Whereas the MacBook Air M2 helped Mac income leap 25 % to $11.5 billion, iPad gross sales dropped sharply — they fell to simply below $7.2 billion versus almost $8.3 billion a yr earlier. And whereas providers like Apple Music and TV+ set a brand new document of $19.2 billion, that is solely a mediocre bump versus the $18.3 billion from a yr in the past. Gross sales for the Apple Watch and good residence units grew solidly from $8.8 billion to $9.7 billion.

The shopper base seems to be robust, a minimum of. Throughout Apple’s earnings name, CFO Luca Maestri famous that roughly half of Mac and iPad patrons have been new to the platform. The corporate additionally touted an all-time (however unspecified) excessive for the variety of lively units. CEO Tim Cook dinner added that cellphone gross sales have been robust regardless of tight provide constraints for the iPhone 14 Professional and Professional Max.

The autumn (Apple’s first fiscal quarter of 2023) may very well be rosier. Apple launched new iPads in October this yr the place it launched up to date fashions in September final yr, so we might count on a bump in gross sales for the pill lineup. Cook dinner added that final yr was “unusually robust” because of the iPad Professional M1 launch. The iPhone 14 household had additionally been out there for simply eight days in the course of the fourth quarter, so total iPhone gross sales ought to enhance.

Apple is not out of hassle but. It is nonetheless hiring extra cautiously, and provide points (together with for the Apple Watch Extremely, Cook dinner says) might canine the corporate for some time. It is also unclear how individuals will take to units just like the iPhone 14 Plus, which did not ship till this month. All the identical, Apple could also be glad. The pc market tanked 19.5 % in the course of the quarter, in line with Gartner estimates, whereas Canalys believes smartphone shipments dropped 9 %. If these figures are fairly correct, Apple is prospering just by avoiding sharp declines in most classes.

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