Apple Announces Financial Report for the Third Quarter of Fiscal Year 2023
Apple has disclosed its financial report for the third quarter of the fiscal year 2023 (ending July 1, 2023), with quarterly revenues amounting to $81.797 billion, a year-over-year decrease of 1%; net profits were $19.88 billion, representing a year-over-year increase of 5%; earnings per diluted share stood at $1.26, an increase of 5% compared to the same period last year; and gross margin was 44.5%, higher than last year’s same quarter of 43.3%. It is evident that Apple, too, has been affected by the overall sluggishness in the global consumer electronics market; this quarter has failed to return to growth, marking the third consecutive quarter of decline. However, Apple’s revenue, net profit, earnings per diluted share, and gross margin have all surpassed market expectations.
Within this fiscal quarter, Europe and the Greater China region remained the only markets to experience growth, with revenues reaching $20.21 billion and $15.76 billion, respectively, reflecting a year-over-year increase of 4.8% and 7.9%. Analyzing the revenue structure, the iPhone, as the pillar of Apple’s product line, saw its revenue fall from $40.6 billion in the same period last fiscal year to $39.67 billion, a year-over-year decrease of 2.4%. This can be attributed to the overall decline in the smartphone market, although it performed better than the overall market trend. The Mac business reported revenue of $6.84 billion, a year-over-year decline of 7.3%; the iPad business revenue plummeted by 19.8% to $5.79 billion, making it the most prominent decline within the hardware segment; wearable devices, home products, and accessories were the only product lines to witness revenue growth, amounting to $8.28 billion, a year-over-year increase of 2.5%.
However, Apple’s service business, on which the company has placed high hopes in recent years, exhibited an impressive performance, with revenues amounting to $21.21 billion for the quarter, a year-over-year growth of 8.2%, setting a new historical high and surpassing the market expectation of $20.77 billion. The service business now constitutes over a quarter of Apple’s income, reaching 26%, and serves as the primary engine of its revenue growth.
