Apple Q3 2023 Posts $81.8 Billion in Revenue

Apple today announced its fiscal Q3 2023 financial results for the period that ended July 1, 2023, recording its third consecutive quarter of revenue decline but a new all-time high for its Services segment.

In total, the iPhone maker reported $81.8 billion USD in revenue for the period, down 1% year-over-year, with earnings per diluted share of $1.26. Apple reported a net income of $19.88 billion for Q3 2023.

“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,” said Apple CEO Tim Cook.

“From education to the environment, we are continuing to advance our values, while championing innovation that enriches the lives of our customers and leaves the world better than we found it.”

Apple reported the following net sales by category:

• iPhone: $39.67 billion
• Mac: $6.84 billion
• iPad: $5.79 billion
• Wearables, Home and Accessories: $8.28 billion
• Services: $21.21 billion

Apple’s Services revenue for the third quarter not only topped the $20.91 billion it reported in the previous quarter but also set a new record for the segment. iPhone shipments also held strong during a quarter that saw overall smartphone shipments in the U.S. drop 24% year-over-year.

The tech giant handily exceeded average Wall Street estimates of $81.63 billion in revenue for the quarter. According to Apple, the company has achieved a new all-time high global installed base of active devices across all major product categories.

“Our June quarter year-over-year business performance improved from the March quarter, and our installed base of active devices reached an all-time high in every geographic segment,” said Apple CFO Luca Maestri.

“During the quarter, we generated very strong operating cash flow of $26 billion, returned over $24 billion to our shareholders, and continued to invest in our long-term growth plans.”

As of the end of its fiscal third quarter, Apple has roughly $28.41 billion in cash and cash equivalents.

Apple said its board of directors has declared a cash dividend of $0.24 per share of the company’s common stock. The dividend will be payable on August 17, 2023, to shareholders of record as of the end of the business day on August 14, 2023.

In an interview with Reuters, Apple CEO Tim Cook shared that the hike in R&D expenditure was partially fueled by their efforts in the domain of generative artificial intelligence. This area is also contributing to increased spending among other major technology firms.

“We’ve been doing research across a wide range of AI technologies, including generative AI, for years. We’re going to continue investing and innovating and responsibly advancing our products with these technologies to help enrich people’s lives,” Cook stated. He also noted, “Obviously, we’re investing a lot, and it is showing up in the R&D spending that you’re looking at.”

Cook further elaborated on the company’s performance, saying, “This was really done by attracting a quarterly record of switchers to the iPhone, as well as having a strong upgrader activity.” He proudly remarked on achieving quarterly records in China for several categories, stating, “We also set quarterly records in China for both wearables, home and accessories, and services.”

In the same discussion, Cook disclosed that Apple’s platform now boasts 1 billion subscribers, encompassing both Apple services and third-party applications, an increase from 975 million in the previous quarter.

He also shared insights into the Mac’s market appeal, saying, “Almost half of the Mac buyers during the quarter were new to the product, and we continue to see strong upgrader activity to Apple Silicon.”

…developing, refresh for updates