Apple Reports 3Q 2023 Results: $19.9B Profit on $81.8B Revenue

[CWallace]

2020-2021 pulled forward sales that now aren't going to happen for a few years. Add in a bad economy and people will just make do with their existing devices a little longer.

And considering existing devices are still so bloody good, that likely dampens upgrade enthusiasm a bit.

Speaking for myself, I have decided to not replace my 2020 iMac 5K with an M2 Mac Studio, but instead use my 14" M1 MacBook Pro since it is more than capable of doing the job. Also likely going to keep my iPhone 14 Pro Max and skip the 15 model. And am going to hold on to my 2018 iPad Pro 12.9 until the OLED models arrive.

So that is ~$5000 worth of Apple kit I am deferring from 2023 to 2024 because even though I could easily afford it, the value is not there for me.

 

[sw1tcher]

Results are better than expected.

Saved by Mac sales (15" M2 MacBook Air?) and Services. Every other category was below estimates.

 

[TheYayAreaLiving 🎗️]

And Steve Balmer laughed at the launch of the iPhone...
Look at Apple now, Mr. Balmer!

Someone told me Mr. Steve Balmber will be ordering the new iPhone 15 Pro Max next month.. 😊

 

[GMShadow]

And considering existing devices are still so bloody good, that likely dampens upgrade enthusiasm a bit.

Speaking for myself, I have decided to not replace my 2020 iMac 5K with an M2 Mac Studio, but instead use my 14" M1 MacBook Pro since it is more than capable of doing the job. Also likely going to keep my iPhone 14 Pro Max and skip the 15 model. And am going to hold on to my 2018 iPad Pro 12.9 until the OLED models arrive.

So that is ~$5000 worth of Apple kit I am deferring from 2023 to 2024 because even though I could easily afford it, the value is not there for me.

With Sonoma looking like a pretty good update, I'm still holding onto my 2019 16" MBP for another year (I'll extend AC+ in September), and likewise, my 5K iMac is fine.

iPad's the one area a bit tricky for me, as I'm debating whether to update my A12Z to an M2, as the M3/OLED is rumored to change design and accessories, and I don't especially want to buy a new Magic Keyboard for some time.

 

[happydude]

How Apple did versus Refinitiv estimates:

• EPS: $1.26 vs. $1.19 estimated
• Revenue: $81.80B vs. $81.69B estimated, down 1% year-over-year
• iPhone revenue: $39.67B vs. $39.91B estimated, down 2% year-over-year
• Mac revenue: $6.84B vs. $6.62B estimated, down 7% year-over-year
• iPad revenue: $5.79B vs. $6.41B estimated, down 20% year-over-year
• Other Products revenue: $8.28B vs. $8.39B estimated, up 2% year-over-year
• Services revenue: $21.21B vs. $20.76B estimated, up 8% year-over-year
• Gross margin: 44.5% vs. 44.2% estimated

Apple now has $166.5 billion in cash on hand, up fractionally from the $166.33 billion they reported having last quarter, and they're still only paying a $0.24 per share dividend? Raise the dividend, or give a one-time large dividend payout like Costco does.

yeah, their stockpile of cash is an embarrassment in riches.

 

[SilvioInfante]

I love when people see 1% less and think "Oh sales went down".

It's not physically possible for something as complex as this to be completely identical from one period to another, nor is it possible for it to continually increase. There has to be some fluctuation. When it drops 20% or more year over year or quarter to quarter, then we can talk about a "decline".

 

[CWallace]

Luca Maestri said regarding next quarter (Q4) that "directionally, it should get a bit better."

So they're expecting strong iPhone 15 sales? Maybe new M3 Macs (iMac) too?

I could see USB-C getting a number of folks who are still on iPhone 11/12/13 to upgrade to iPhone 15.

And if AirPods, battery packs, Magic Keyboards and mice and such all go to USB-C, that will likely drive replacement sales.

 

[DanVM]

Apple continues to produce products and services people want.

I agree with products / devices, but I don't think Apple have services people want. MS, Google, Spotify and others are ahead of Apple in services.

 

[jwolf6589]

Apple today announced financial results for its third fiscal quarter of 2023, which corresponds to the second calendar quarter of the year.

For the quarter, Apple posted revenue of $81.8 billion and net quarterly profit of $19.9 billion, or $1.26 per diluted share, compared to revenue of $83.0 billion and net quarterly profit of $19.4 billion, or $1.20 per diluted share, in the year-ago quarter.

Gross margin for the quarter was 44.5 percent, compared to 43.3 percent in the year-ago quarter. Apple also declared a quarterly dividend payment of $0.24 per share, payable on August 17 to shareholders of record as of August 14.As has been the case for over three years now, Apple is once again not issuing guidance for the current quarter ending in September.

Apple will provide live streaming of its fiscal Q3 2023 financial results conference call at 2:00 p.m. Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference call starts at 2:00 p.m. Pacific - No need to refresh

​

Visit article to see live updates



Article Link: Apple Reports 3Q 2023 Results: $19.9B Profit on $81.8B Revenue

Wow. Mac made up more profit than the iPad.

 

[Coreymac84]

WOW! Almost $20 Billion Dollars in profit! Pretty impressive! Even tho sales are down iPhone is still killing it.

This is what happens when they slap a new number on a similar device or give you trash base model RAM. lol

 

[coolfactor]

And they about to increase iPhone prices more profit

Comments like this completely ignore the "cost" of running a business. Those costs keep going up for everyone, including Apple. A higher selling price may not reflect a beefier margin.

 

[coolfactor]

Wow. Mac made up more profit than the iPad.

Macs are the best they've ever been. iPad is still trying to find its place in the world.

 

[GMShadow]

Wow. Mac made up more profit than the iPad.

Mac ASPs are a lot higher, ultimately. Cheapest Mac is $599, cheapest iPad is $329. We know the best selling Macs are the Air (starts at $999) and 13" Pro ($1299). I suspect Apple sells more iPads in the $329-$599 range than they do the Pros.

 

[Apple Fan 2008]

Very disappointing iPod Net Sales

R.I.P. iPod 🫡

 

[klasma]

Considering the current inflation level, it is still impressive

If you adjust revenue/profit for inflation, it's rather less impressive.

 

[Nozuka]

Looking at the Mac revenue over time, i'm a bit disappointed about the growth there.
Macbooks are the best they have ever been thanks to Apple Silicon and i thought they would have much better margins with their own chips too.

 

[SilvioInfante]

I could see USB-C getting a number of folks who are still on iPhone 11/12/13 to upgrade to iPhone 15.

A number, yes. But not a large number. The iPhone market is absolutely gigantic, and the number of users who even know what USB-C is, let alone care about and desire it intensely in their next iPhone, is vanishingly small. There are many that would consider this a negative, changing the charging port they've been happily using for 10+ years.

The amount of users who need to be motivated to upgrade in order to create a super cycle is larger every day. And it is so large now that its hard to imagine it even being possible. I don't see any aspect of iPhone 15 making a major impact on sales. Only the rumored price increases, which may lead to higher ASP.

 

[SilvioInfante]

Macs are the best they've ever been. iPad is still trying to find its place in the world.

How exactly is a $40 billion a year product still trying to find its place?
iPad was fine the way it was before certain people started to try to force it to be more like a Mac.

 

[NMBob]

No, because the maximum balance you can have in an Apple Savings account is $250,000.00, the max that FDIC insurance will cover.

You can have more. You just won't get more than $250K back if Goldman Sachs goes under, or embezzles $19,999,750,000.

 

[SilvioInfante]

Looking at the Mac revenue over time, i'm a bit disappointed about the growth there.
Macbooks are the best they have ever been thanks to Apple Silicon and i thought they would have much better margins with their own chips too.

iPad and iPhone both eat into Mac sales tremendously. The Mac is not the only way to do the basic things that iPhone and iPad do. That was that case, once upon a time. The Mac sales today go to the true creators. The people who are actually making things...making all the things the iPhone and iPad users are consuming. There isn't any real reason for the Mac market to increase just because the Macs themselves get better. The user base is still the same.

 

[sw1tcher]

Comments like this completely ignore the "cost" of running a business. Those costs keep going up for everyone, including Apple.

That's why Tim Cook Apple is extending their hiring freeze, reducing the frequency of bonuses, and taking an almost 50% salary cut. It's why they're laying off some corporate employees.

But perhaps the biggest move they're taking to keep costs down is moving more of their supply chain and production from China to lower labor cost India.

A higher selling price may not reflect a beefier margin.

Doing the above and raising prices will result in beefier margins.

Their most recent margins came in at 44.5% vs the 44.2% estimate. Their guidance was for margins to be between 44 and 44.5%, so actual margin came in at the high end of their guidance. That's up from the 44.3% in the previous quarter (Q2).

Trust that Tim Apple knows how to work those margins gradually higher.

They said they're expecting Q4 margins to come in between 44% and 45%.

 

[Mrkevinfinnerty]

R.I.P. iPod 🫡

Rest easy in eternal DFU mode 🫡

 

[MuppetGate]

Apple now has $166.5 billion in cash on hand, up fractionally from the $166.33 billion they reported having last quarter, and they're still only paying a $0.24 per share dividend? Raise the dividend, or give a one-time large dividend payout like Costco does.

or they could keep the dividend lower and avoid laying off thousands of people like every other tech company has done.

 

[anthogag]

Apple's profit shows they can keep new 15 iPhones at current prices.

Services revenue shows they can make MLS subscription part of Apple One subscription. Many new MLS subscribers are probably watching only Miami games.

 

[MuppetGate]

I agree with products / devices, but I don't think Apple have services people want.

A billion customers seemed to want them. 🤷🏾‍♂️