Apple Q1 2023: December Quarter Revenue Down 5%

Apple today announced its fiscal Q1 2023 financial results for the period that ended December 24, 2022, recording a new all-time high for the quarter.

The iPhone maker reported $117.2 billion USD in revenue for the first fiscal quarter of the year, down 5% year-over-year, with earnings per diluted share of $1.88. Apple reported a net income of $29.998 billion for Q1 2023.

“As we all continue to navigate a challenging environment, we are proud to have our best lineup of products and services ever, and as always, we remain focused on the long term and are leading with our values in everything we do,” said Apple CEO Tim Cook.

Apple reported the following net sales by category:

• iPhone: $65.78 billion
• Mac: $7.74 billion
• iPad: $9.4 billion
• Wearables, Home and Accessories: $13.48 billion
• Services: $20.77 billion

Apple’s Services revenue for the first quarter not only topped the $19.19 billion it reported in the previous quarter but also set a new record for the segment. Consumer demand headwinds and Apple’s iPhone 14 supply woes between October and December were evident in its results, however, as iPhone revenue dipped 8.2% from $71.63 billion in the year-ago quarter to $65.78 billion.

Apple came in shy of Wall Street estimates of $121.9 billion in revenue for the quarter. According to Cook, the company now has an all-time high global installed base of more than two billion active devices across all major product categories.

“We set an all-time revenue record of $20.8 billion in our Services business, and in spite of a difficult macroeconomic environment and significant supply constraints, we grew total company revenue on a constant currency basis,” said Apple CFO Luca Maestri.

“We generated $34 billion in operating cash flow and returned over $25 billion to shareholders during the quarter while continuing to invest in our long-term growth plans.”

As of the end of the first quarter, Apple has roughly $20.53 billion in cash and cash equivalents.

Apple said its board of directors has declared a cash dividend of $0.23 per share of the company’s common stock. The dividend will be payable on February 16, 2023, to shareholders of record as of the end of the business day on February 13, 2023.

Earlier this week, Wedbush Securities analyst and regular Apple bull Daniel Ives said that the iPhone maker’s fiscal first-quarter results will be the “most important earnings” for the tech market.

…developing, refresh for updates