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

[JamesHolden]

Just like Meta is investing everything into VR, Apple has its hopes for the future based on Vision Pro being the next iPhone. If it fails, the long-term outlook is not so rosy. Now, I think Vision Pro will succeed massively. But so many people here disagree. The only number Apple improves on quarter after quarter, year after year is based on services. Something has to make up for the lack of iPad, iPhone and Mac prosperity. Better be Vision Pro.

I don’t think Apple is looking at Vision Pro to be the next iPhone. That’s wildly unrealistic given the price point if nothing else. Vision Pro doesn’t have to sell iPhone level units to be a successful new revenue stream, however. Apple has been trying to lessen its dependence on iPhone revenue for years and wearables have been a huge bright spot.

I see Tim raping the company of all its resources.

That’s rich considering he’s the one who amassed many of those resources for the company. Look at company numbers when he took over versus now. Your comment is ridiculous.

Taking as much as he can year after year. Selling the future for right now.

And how’s that exactly? Tim Cook has built Apple into the most successful company of all time and the most respected tech company on Earth. What exactly is he taking?

It’s a major problem in public corporations. That’s why need someone who doesn’t care about the money in charge. Like Steve Jobs. Apple would have a much more secure future if they had gone with Scott Forestall and Jon Ive as their strategy moving forward versus Tim Cook.

That’s hilarious, not to mention flat out wrong. Why was Steve fired from Apple? Because he didn’t care about the money, as you say, and would have bankrupted the company by pursuing a Mac-only strategy when the Apple II made all the money. He still didn’t learn his lesson at NeXT, where he amassed tons of debt and never turned a profit. He eventually learned to care about the money and he most definitely cared about the money when he took over leadership at Apple.

The MacBooks have gone backwards in every phase except SoC.

Really? What should they be doing by now? The SoC is pretty huge. No one gets that kind of performance and battery life.

That also was about money.

It was about control more than money. Apple has always wanted to control the whole widget. That was Jobs’ dream from day one. If you’re such a Steve Jobs fan you should understand that. Building their own chips was one of his biggest dreams.

Think we need a massive notch on our MacBooks? What about outdated SD cards and HDMI that didn’t have the same bandwidth as Thunderbolt. Thicker when they now don’t need to be to support legacy ports. I know I am not in the majority here, but I don’t care. All I care about as a user and investor is getting Tim Cook out and moving forward with someone who understands the technology inside these Apple products instead of a money now versus selling soul to devil for a company with no vision later.

Really? You want to get rid of the guy who built most of the wealth for the company? The one who has launched multiple successful new product categories? The one who realized Jobs’ vision for building a custom Apple processor for all product lines? That guy? Hilarious.

 

[JosephAW]

Now that photo stream is shuttered storage revenue should be up.

 

[SFjohn]

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.

All those people may not be upgrading, but they’ll be using Apple Services… 💴💴💴💸!

 

[mashinhead]

It's funny Apple really is just the iPhone

 

[mr_jomo]

EXSUM: Apple remains resilient in very tough market conditions.

 

[mdriftmeyer]

It's funny Apple really is just the iPhone

Charts differ on that point, but for sure Google is really just Search Advertising.

 

[TallManNY]

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.

Got to agree there. A $1 a year dividend on a $190 share is kind of pathetic for a cash flowing company like Apple. But with uncertain economic conditions in the world, this was obviously not a quarter in which the dividend was going to be raised.

 

[tomtad]

Apple Faces Longest Sales Slowdown in Decades as iPhone Slumps​

Apple Faces Longest Sales Slowdown in Decades as iPhone Slumps

Apple Inc. posted its third straight quarter of declining sales and predicted a similar performance in the current period, hurt by an industrywide slump that has sapped demand for phones, computers and tablets.

www.bloomberg.com

Bloomberg summed it up well, these are not good results. Products are stagnating.

It’s time for Tim to go and bring in some fresh ideas and leadership.

 

[GMShadow]

Apple Faces Longest Sales Slowdown in Decades as iPhone Slumps​

Apple Faces Longest Sales Slowdown in Decades as iPhone Slumps

Apple Inc. posted its third straight quarter of declining sales and predicted a similar performance in the current period, hurt by an industrywide slump that has sapped demand for phones, computers and tablets.

www.bloomberg.com

Bloomberg summed it up well, these are not good results. Products are stagnating.

It’s time for Tim to go and bring in some fresh ideas and leadership.

As always, Apple Is Doomed.


I would love to hear from Doomberg exactly which sectors are growing with the economy in the crapper.

 

[Velli]

… yes, if all you are looking at is $$$. As a consumer, I would prefer more choices and significant improvements in quality control. Yes, i know, there is Android and Windows but I am locked into Apple‘s eco-system monopoly … locked in not theoretically, i know, but practically.

No, you’re not. You are locked in by your own choice, which you are making because the available alternatives are worse. Plenty of people live their lives through those worse alternatives, and do fine. But you choose the better option, which makes Apple more money, and that makes Tim the world’s greatest CEO by any meaningful measure.

I never understood the people who eant Apple to supply everything Android or Windows does. If you like iOS, why do you want to turn it into Android? The reason iOS is better, is BECAUSE it is more focused. If Apple used the same “throw it at the wall and see what sticks” tactics as the rest, they wouldn’t be Apple, they would be just another option in the grey mass of manufacturers that is the Android/Windows ecosystem.

 

[coolbreeze2]

This is the company that nearly became bankrupt and out-of-business in the 80s and early 90s. Now they are one of the most successful and wealthiest companies in the world. They were being laughed at by Microsoft, Dell, and many others. Now those companies are trying to fan and breathe through the dust Apple is leaving behind.

 

[GMShadow]

No, you’re not. You are locked in by your own choice, which you are making because the available alternatives are worse. Plenty of people live their lives through those worse alternatives, and do fine. But you choose the better option, which makes Apple more money, and that makes Tim the world’s greatest CEO by any meaningful measure.

I never understood the people who eant Apple to supply everything Android or Windows does. If you like iOS, why do you want to turn it into Android? The reason iOS is better, is BECAUSE it is more focused. If Apple used the same “throw it at the wall and see what sticks” tactics as the rest, they wouldn’t be Apple, they would be just another option in the grey mass of manufacturers that is the Android/Windows ecosystem.

Personally I just wish they'd restart the AirPort line. It's almost unfair how utterly stable they are. I know they felt like third party options had improved, but it's just not quite the same.

 

[Velli]

Personally I just wish they'd restart the AirPort line. It's almost unfair how utterly stable they are. I know they felt like third party options had improved, but it's just not quite the same.

Agree, but in a discussion on whether Tim is a succesful CEO, it’s about as important as the number of available Parking spots in Apple Park.

 

[svish]

Overall a good quarter for Apple.

 

[Velli]

Fun fact: At the end of this finance year, Apple’s yearly services revenue will be higher than the cummulated iPhone revenue of Steve Jobs’ lifetime. 2022 was already close.

 

[Velli]

Just like Meta is investing everything into VR, Apple has its hopes for the future based on Vision Pro being the next iPhone. If it fails, the long-term outlook is not so rosy. Now, I think Vision Pro will succeed massively. But so many people here disagree. The only number Apple improves on quarter after quarter, year after year is based on services. Something has to make up for the lack of iPad, iPhone and Mac prosperity. Better be Vision Pro.

I see Tim raping the company of all its resources. Taking as much as he can year after year. Selling the future for right now. It’s a major problem in public corporations. That’s why need someone who doesn’t care about the money in charge. Like Steve Jobs. Apple would have a much more secure future if they had gone with Scott Forestall and Jon Ive as their strategy moving forward versus Tim Cook. The MacBooks have gone backwards in every phase except SoC. That also was about money. Think we need a massive notch on our MacBooks? What about outdated SD cards and HDMI that didn’t have the same bandwidth as Thunderbolt. Thicker when they now don’t need to be to support legacy ports. I know I am not in the majority here, but I don’t care. All I care about as a user and investor is getting Tim Cook out and moving forward with someone who understands the technology inside these Apple products instead of a money now versus selling soul to devil for a company with no vision later.

I’m not going to pick apart your arguments although that would be easy, but: You realize Tim didn’t just join Apple when Steve died, right? Cook is a very large part, perhaps even more so than the world knows, of Steve Jobs being able to make Apple succesful. Tim was head of operations, which is the “engine” of the company. Cook was the one who made a financial succes story out of Steve’s crazy ideas. Claiming that Cook is just taking down what Jobs built up is simply ignorant, in all sort of ways.

 

[Velli]

Apple Faces Longest Sales Slowdown in Decades as iPhone Slumps​

Apple Faces Longest Sales Slowdown in Decades as iPhone Slumps

Apple Inc. posted its third straight quarter of declining sales and predicted a similar performance in the current period, hurt by an industrywide slump that has sapped demand for phones, computers and tablets.

www.bloomberg.com

Bloomberg summed it up well, these are not good results. Products are stagnating.

It’s time for Tim to go and bring in some fresh ideas and leadership.

Please show me ONE product, in any category between tooth paste and rocket ships, where you can say “look, Apple missed the boat, these guys are the innovators now”.

Electric cars MAYBE, and that’s about it.

As long as there is no Steve Jobs in other companies, it’s ridiculous to fault Tim Cook for not being Steve Jobs.

 

[aaadktda]

Please show me ONE product, in any category between tooth paste and rocket ships, where you can say “look, Apple missed the boat, these guys are the innovators now”.

Foldable phones? I know you will make some mental gymnastics to dismiss them but foldable phones are a thing.

Apple sales have taken a serious hit. The numbers look good because they managed to sell enough units at a significantly higher price to fewer people. I love the iPad mini but prices are insane in Europe. 30-40% higher than launch day. They priced me out of this device. I wanted the iPhone 14 Plus but when I saw the price I decided to keep my XR for another year. 8GB/256GB non upgradable M2 laptops sell for 1500 euros. A decent configuration with a bit of future proofing will set you back almost 3000 euros.

They are not going to be able to do this forever. There are 3 iPhones, 4 iPads and a Mac mini in my household. Plus 3 paid subscriptions to Apple services. If things don't change in a year or 2 I will probably make the switch to Android and Linux/Windows.

 

[magdogg]

M3 should boost mac sales

 

[T'hain Esh Kelch]

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.

Two issues with this:
1. it would signal that Apple has stopped growing, and is trying to maintain shareholders by giving out dividends. They might be able to get around it with one big payout, but it seems too random for Cook to do that.
2. some shareholders would feel that is the wrong move, as they want Apple to use the money to invent magical new stuff instead; something that many things have been stagnating under Cook.

 

[ThailandToo]

I don’t think Apple is looking at Vision Pro to be the next iPhone. That’s wildly unrealistic given the price point if nothing else. Vision Pro doesn’t have to sell iPhone level units to be a successful new revenue stream, however. Apple has been trying to lessen its dependence on iPhone revenue for years and wearables have been a huge bright spot.


That’s rich considering he’s the one who amassed many of those resources for the company. Look at company numbers when he took over versus now. Your comment is ridiculous.


And how’s that exactly? Tim Cook has built Apple into the most successful company of all time and the most respected tech company on Earth. What exactly is he taking?


That’s hilarious, not to mention flat out wrong. Why was Steve fired from Apple? Because he didn’t care about the money, as you say, and would have bankrupted the company by pursuing a Mac-only strategy when the Apple II made all the money. He still didn’t learn his lesson at NeXT, where he amassed tons of debt and never turned a profit. He eventually learned to care about the money and he most definitely cared about the money when he took over leadership at Apple.


Really? What should they be doing by now? The SoC is pretty huge. No one gets that kind of performance and battery life.


It was about control more than money. Apple has always wanted to control the whole widget. That was Jobs’ dream from day one. If you’re such a Steve Jobs fan you should understand that. Building their own chips was one of his biggest dreams.


Really? You want to get rid of the guy who built most of the wealth for the company? The one who has launched multiple successful new product categories? The one who realized Jobs’ vision for building a custom Apple processor for all product lines? That guy? Hilarious.

Yes, because AAPL would probably be worth 30% less with Forestall and Ive at the top, but 20 years from now they would still be building on the successes each compounding the company’s market valuation. Tim is good for now but bad for long-term as he doesn’t understand technology.

And yes, Apple’s Vision Pro is the style that will be our future. Even though the technology is big and bothersome now, ten years from now probably the size of eyeglasses - 20 years from now contacts powered by our own body energy. Only some of you can see the future if you think the first generation is the future for Vision Pro’s technology innovations iteration into new models that will take every from iPhone, iPad and Mac and put them right into one’s own vision.

 

[ThailandToo]

I’m not going to pick apart your arguments although that would be easy, but: You realize Tim didn’t just join Apple when Steve died, right? Cook is a very large part, perhaps even more so than the world knows, of Steve Jobs being able to make Apple succesful. Tim was head of operations, which is the “engine” of the company. Cook was the one who made a financial succes story out of Steve’s crazy ideas. Claiming that Cook is just taking down what Jobs built up is simply ignorant, in all sort of ways.

Go ahead and pick my arguments apart. Most don’t understand the current value versus potential value along a timeline. Tim Cook created instant value added but by lacking on the most innovative and brightest people and firing one and driving the other to the point of leaving. Thereas the long-term outlook 20 years from now suggests AAPL will be a shell of itself. Unless Vision Pro is the ultimate technology that leads Apple forward. It could be. But that’s one bet and no others by Tim’s Apple.

I say AAPL is worth less 20 years from today than today. Tim sold AAPL’s would to the devil. Got short-term growth at loss of long-term value by not hiring and spending on future technologies and innovations.

 

[Dave245]

Foldable phones? I know you will make some mental gymnastics to dismiss them but foldable phones are a thing.

Apple sales have taken a serious hit. The numbers look good because they managed to sell enough units at a significantly higher price to fewer people. I love the iPad mini but prices are insane in Europe. 30-40% higher than launch day. They priced me out of this device. I wanted the iPhone 14 Plus but when I saw the price I decided to keep my XR for another year. 8GB/256GB non upgradable M2 laptops sell for 1500 euros. A decent configuration with a bit of future proofing will set you back almost 3000 euros.

They are not going to be able to do this forever. There are 3 iPhones, 4 iPads and a Mac mini in my household. Plus 3 paid subscriptions to Apple services. If things don't change in a year or 2 I will probably make the switch to Android and Linux/Windows.

Foldable phones are a fad, they are like 3D TV’s. Apple are not responsible for the current cost of living crisis, prices are higher because so is inflation. They still have to make devices so when costs go up, so do the prices.

Apple still make the best products in my opinion, if you work it out over a period of time, Apple devices work out far more economically sound. For example an iPhone gets 5 years of updates, security updates even longer. For me that is well worth the price of admission.

Mac’s are even more better value for money, especially now with Apple’s M chip. I have the MacBook Air 15” and the battery life is the best on any laptop I have ever had, including previous Intel based. My previous MacBook Pros lasted me many years (my 2011 being the longest i’ve ever kept a computer until 2019 when I got my Touch Bar MacBook Pro).

My point is that almost all Apple devices last for a long time, in fact most people update before they need too (every 2 years for iPhones IF the person is on a contract).

 

[Jay Tee]

LOL. It's gonna go back up next quarter, especially with the release of the redesigned 13-inch MacBook Pro (entry level without touchbar) and the iPhone 15th generation of devices.

People forget, Mac sales alone is almost a Fortune 100 company.

082. Cisco Sys. = $51.5B
100. Coca-Cola = $43B
105. Gen Dynamics = $39.4B

Macs alone = over $40 Billion in revenue for FYE 24th Sep 2022

 

[Zest28]

Apple Faces Longest Sales Slowdown in Decades as iPhone Slumps​

Apple Faces Longest Sales Slowdown in Decades as iPhone Slumps

Apple Inc. posted its third straight quarter of declining sales and predicted a similar performance in the current period, hurt by an industrywide slump that has sapped demand for phones, computers and tablets.

www.bloomberg.com

Bloomberg summed it up well, these are not good results. Products are stagnating.

It’s time for Tim to go and bring in some fresh ideas and leadership.

It‘s a difficult economic climate currently and other companies are facing the same issues. Consumers simply cannot afford all these expensive items anymore.

However, Apple does carry some type of status, as people want an iPhone no matter what the price is. So the iPhone 15 could still sell like hotcakes in the current economic climate while jacking up the price.