Apple reports record revenue for fiscal third quarter; Services, iPhone save the day

1comment
Apple reports record revenue for fiscal third quarter; Services, iPhone save the day
Apple reported a slight increase in iPhone revenue for the fiscal third quarter as the device generated $40.67 billion in revenue over the three-months, topping Wall Street's estimate of $38.33 billion. This was a 3.2% year-over-increase compared to the $35.87 billion in iPhone gross that Apple reported for the same quarter last year. For the first nine months of fiscal 2022, Apple has received iPhone revenue of $162.86 billion. For the first nine months of fiscal 2021, that figure was $153.11 billion which means that Apple has increased iPhone sales by 6.4% for the fiscal year to date compared to the same time last year.

The only other division that showed an increase was Services. The unit enjoyed a 12.11% increase in revenue from the $17.49 billion reported during last year's fiscal third quarter to the $19.60 billion announced this year. The Services unit includes Apple Pay, the App Store, AppleCare, iTunes, iCloud, Apple Music, Apple TV+, and more. It is the second largest business unit for Apple after the iPhone.

Apple iPad sales decline but still manage to top expectations from Wall Street analysts


Tablet demand decreased as businesses started opening up offices again as fear over COVID waned. During the height of the pandemic, consumers and students forced to work and learn from home started buying tablets en masse to do their work and entertain themselves with games and streaming apps. For the fiscal third quarter, Apple announced $7.22 billion in sales which was down from the $7.37 billion in tablets Apple rang up during the same quarter in 2021 resulting in a small 2% drop. Still, the results did top the $6.94 billion in iPad sales forecast by analysts.

The usually reliable Wearables, Home and Accessories unit was a disappointment. This division, which includes the AirPods and the Apple Watch, brought in $8.08 billion compared to the $8.78 billion that it collected during the same quarter last year. That works out to a 7.9% decline year-over-year.

Apple grew its business in the Americas (up 4.5%), Europe (up 1.8%), and the Asian Pacific region not including Japan (up 14%). Sales declined in Greater China (down .1%) and Japan ( down 15.7%).

Despite the mixed showing, Apple reported the highest revenue for a fiscal third quarter in company history at $83 billion. This topped Wall Street expectations of $82.81 billion and was a 2% annual hike. Net earnings weighed in at $19.44 billion, down 10.6% from the prior year's $21.74 billion. Analysts were looking for Apple to report earnings per share of $1.16 which Apple topped by reporting $1.20; still, that was an 8% decline on an annual basis. Sales of the iPhone during the fiscal third quarter made up 49% of the company's top line, flat with the results from the fiscal third quarter last year.

Apple CEO Tim Cook said, "This quarter’s record results speak to Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers. As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone."

Recommended Stories
Tim Cook's comments about the current quarter indicate that Apple is still seeing some patches of weakness. Cook told CNBC, "In terms of an outlook in the aggregate, we expect revenue to accelerate in the September quarter despite seeing some pockets of softness."

Company CFO Luca Maestri added that "Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category. During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans."

Apple's shares soared after the announcement. During regular trading on NASDAQ, Apple' shares rose 56 cents or .36% to $157.35. In after-hours trading the stock is up an additional $4.46 or 2.83% to $161.81. The 52-week high is $182.94 while the 52-week low is 129.04.

Recommended Stories

Loading Comments...
FCC OKs Cingular\'s purchase of AT&T Wireless