Apple presented mediocre quarterly figures on Thursday evening. Total revenue for the three months ended July 1 reached $81.8 billion, down slightly from the same period last year ($83 billion). Operating profit fell $78 million to $23 billion. Operating cash flow fell $9.1 billion to $88.9 billion. The group’s net profit was $19.9 billion, slightly more than in the same quarter last year ($19.4 billion).
Key iPhone sales numbers were weaker. At $39.7 billion, revenues were a good 2.4 percent below the same quarter last year. While Apple’s overall sales beat Wall Street’s estimate, analysts had expected iPhone sales to be slightly higher ($39.8 billion) on average.
Services up, iPhone, Macs and iPads down
Things went better in the services business, which ranges from audio and video content to the App Store and support and is considered highly profitable. Services boss Eddy Cue’s department achieved a new all-time high with sales of $21.2 billion (previous year: $19.6 billion). Sales of the Mac ($6.8 billion instead of $7.3 billion) and iPad ($5.7 billion instead of $7.2 billion) each fell visibly, while the wearables, home and accessories division with the Apple Watch grew by 200 million to $8.2 billion.
The last quarter was very weak in terms of product for Apple. Only new desktops (Mac Pro M2 Ultra, Mac Studio M2 Max and M2 Ultra) and a 15-inch MacBook Air with the SoC from last year were presented. New iPhones and computer watches are expected to appear in September. The new mixed reality headset Vision Pro was first shown by Apple in June, but it will not be launched until spring 2024 – and then initially only in the USA.
Smartphone crisis also reaches Apple
The iPhone sales figures show that the general smartphone crisis has now reached the most valuable company in the world. Suppliers like Qualcomm have already shown with worse numbers that demand is shrinking. With the iPhone 15, 15 Plus, 15 Pro and 15 Pro Max, new models are expected in autumn, which, among other things, should have USB-C ports for the first time. The big revolution – for example with new form factors like a foldable – is not expected by observers.
Apple shares fell 2 percent in after-hours trading after the financial figures were announced. CEO Tim Cook emphasized that Apple has never had as many active devices as it does now, and that one billion paid subscriptions bring in ongoing revenue. CFO Luca Maestri said Apple will pay a dividend of 0.24 cents per share and “returned $24 billion to shareholders” through share buybacks and dividends last quarter. The service business more than compensated for the decline in the hardware sector. Apple did not announce sales estimates for the next quarter.
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