big picture: In the third quarter ending June 25, Apple reported revenue of $83 billion in its most recent quarter, a 1.87 percent increase from the year-ago period. However, gains were lower by 10.59 per cent – from $21.74 billion to $19.44 billion – due to continued supply constraints and Covid-related shutdowns in China, as well as negative foreign exchange rates.
Earnings per share fell to $1.20 from $1.31 during the same period last year, but still trailed FactSet estimates of $1.16 per share. Apple’s board also announced a cash dividend of $0.23 per share, due on August 11.
iPhone sales revenue rose 2.77 percent year-over-year to $40.67 billion. Its services division saw an even more impressive growth of 12.11 percent, from $17.49 billion in the third quarter of 2021 to $19.6 billion in the most recent three-month period.
Revenue from sales of Macs, iPads and devices in the wearables, home and accessories categories was down in the quarter compared to the same period last year. Mack was the worst hit as revenue fell more than 10 percent to $7.38 billion in the third quarter. Revenue from the wearables category declined 7.87 per cent to $8.08 billion and iPad revenue declined 1.95 per cent to $7.24 billion.
The second half of the year is usually the strongest for Apple, and that’s not expected to change this time. The next generation of iPhones are expected to debut in mid-September and launch a week or so later. They will have no impact on fiscal fourth quarter earnings due at the time, and will instead appear on the following earnings report.
In a conference call with investors, Apple CFO Luca Maestri said that given the ongoing worldwide uncertainty in the near future, they are not providing revenue guidance for the upcoming quarter. That said, Apple believes year-over-year revenue growth will accelerate during the September quarter compared to the June quarter. And on the product side, Maestri said Apple expects supply chain constraints to be less than it experienced in fiscal Q3.
Image credit: Karolina Groboska