Tim Cook Expects Apple's September Quarter Revenue Growth to Accelerate Despite 'Pockets' of Softness

[MacRumors]

Apple today reported its earnings results for the third quarter of the 2022 fiscal year, including revenue of $83 billion and net quarterly profit of $19.4 billion. As usual since the start of the COVID-19 pandemic, Apple did not provide formal revenue guidance for the ongoing quarter, but Apple CEO Tim Cook did help to set expectations.

Cook told CNBC's Steve Kovach that he expects year-over-year revenue growth to "accelerate in the September quarter" compared to the June quarter "despite seeing some pockets of softness" in some areas, including digital advertising across its platforms.

Speaking on Apple's earnings call, Cook said Apple is facing a "cocktail of headwinds" affecting its revenue, including a strong U.S. dollar that is expected to cause a foreign exchange headwind of around $5 billion in the September quarter, along with supply constraints and a loss of business in Russia amid its war on Ukraine. Cook said Apple's Wearables, Home, and Accessories category is also facing macroeconomic headwinds.

Apple reported revenue of $83.4 billion in the September 2021 quarter. On average, analysts expect Apple to report $90 billion revenue in the September 2022 quarter, according to data compiled by Yahoo Finance.

Apple's fourth quarter began June 26 and runs through September 24. The quarter has already included the start of orders for the new MacBook Air with the M2 chip, and it will likely include at least a few days of iPhone 14 pre-orders as well.

Article Link: Tim Cook Expects Apple's September Quarter Revenue Growth to Accelerate Despite 'Pockets' of Softness

 

[dmunz]

Wait, when did I miss the black MacBook announcement?

 

[alpi123]

Wait, when did I miss the black MacBook announcement?

It's the new M2 Macbook Air in the Midnight color. Not really black, it's technically blue but depending on the lighting can appear matte black

 

[IsaacM]

Considering they are raising the prices of their top selling products (M2 and upcoming iPhone), I am not surprised.

 

[goborgh]

..."they expect growth to accelerate in the September quarter...".
Well duh, that's when the new iPhone comes out every year.

 

[sideshowuniqueuser]

Considering they are raising the prices of their top selling products (M2 and upcoming iPhone), I am not surprised.

Whoa, how do you know they are raising the price on their upcoming iPhone?

 

[BellSystem]

The stock holders thank you for buying their high margin products. Tim yacht captain also thanks you.

 

[ticzon]

Everything has to go up in price. Gas, Food, Computer Chips, etc.

However, we did see a nice pop on the AAPL stock price in after-hours trading. The stock is on track on a full recovery.

 

[julesme]

Where are MR's patented, color-coded pie charts and revenue growth graphics?

Edit: NVM, I see they are posted now!

 

[Yr Blues]

Breaking news: Tim Cook likes money.

 

[CarAnalogy]

The stock holders thank you for buying their high margin products. Tim yacht captain also thanks you.

I'll just choose this one of many similar comments to point out that just about anyone can be an Apple stockholder. It's not like you're buying Berkshire Hathaway for $10,000 a share. If you have any retirement savings at all just buy a couple on the dips and it'll probably be the best investment you can make as a casual investor.

 

[Graphton]

Apple today reported its earnings results for the third quarter of the 2022 fiscal year, including revenue of $83 billion and net quarterly profit of $19.4 billion. As usual since the start of the COVID-19 pandemic, Apple did not provide formal revenue guidance for the ongoing quarter, but Apple CEO Tim Cook did help to set expectations.

Cook told CNBC's Steve Kovach that he expects year-over-year revenue growth to "accelerate in the September quarter" compared to the June quarter "despite seeing some pockets of softness" in some areas, including digital advertising across its platforms.

Speaking on Apple's earnings call, Cook said Apple is facing a "cocktail of headwinds" affecting its revenue, including a strong U.S. dollar that is expected to cause a foreign exchange headwind of around $5 billion in the September quarter, along with supply constraints and a loss of business in Russia amid its war on Ukraine. Cook said Apple's Wearables, Home, and Accessories category is also facing macroeconomic headwinds.

Apple reported revenue of $83.4 billion in the September 2021 quarter. On average, analysts expect Apple to report $90 billion revenue in the September 2022 quarter, according to data compiled by Yahoo Finance.

Apple's fourth quarter began June 26 and runs through September 24. The quarter has already included the start of orders for the new MacBook Air with the M2 chip, and it will likely include at least a few days of iPhone 14 pre-orders as well.

Article Link: Tim Cook Expects Apple's September Quarter Revenue Growth to Accelerate Despite 'Pockets' of Softness

I like Tim, that is all.

 

[smulji]

Is it me or is Tim Cook looking more muscular?

 

[CarAnalogy]

Is it me or is Tim Cook looking more muscular?

He finally gave in and subscribed to Fitness+

 

[jav6454]

Hmm, bold statement given that today Q2 GDP in the US was the 2nd consecutive in negative growth meaning official start of a 2nd recession.

 

[terminator-jq]

Not too surprising:

#1) Of course he's going to say that. I mean he's the CEO on a call with investors.

#2) He's probably correct since the September period will include the M2 MacBook Air and possibly the iPhone, Apple Watch and new iPad initial sales wave (depending on when the announcement and launch take place).

That being said, Apple could be in a tough position come Q4 2022 when the recession is expected to really hit (even if they aren't calling it that right now). It will be interesting to see how Apple keeps sales up during this economic downturn.

 

[jimbobb24]

Apple is generally strong even in recessions so I am bullish for them despite the downturn.

 

[jchap]

What are "macroeconomic headwinds"? I took that to mean that the industries and markets that generally purchase Apple's "wearables, home and accessories" products themselves are changing or volatile markets that are being affected by other factors, thus making it harder for Apple to sell said products. Not sure, though.

 

[BuddyTronic]

..."they expect growth to accelerate in the September quarter...".
Well duh, that's when the new iPhone comes out every year.

Yeah but stating the truth and stating the obvious is absolutely needed in this world or you’ll have analysts twisting Quarterly reports in illogical ways to fit a doom perspective.

When the negative spin “analysts” spew twisted logic I hope there are enough people calling them out

 

[BuddyTronic]

Not too surprising:

#1) Of course he's going to say that. I mean he's the CEO on a call with investors.

#2) He's probably correct since the September period will include the M2 MacBook Air and possibly the iPhone, Apple Watch and new iPad initial sales wave (depending on when the announcement and launch take place).

That being said, Apple could be in a tough position come Q4 2022 when the recession is expected to really hit (even if they aren't calling it that right now). It will be interesting to see how Apple keeps sales up during this economic downturn.

Remind me if we get any recession hitting us in 2022. I’m betting it’s nothing much. Inflation hurts but even that is just fuel and some foods type stuff largely.

No layoffs. Many jobs available. This is something different than “recession” I’d say

 

[szw-mapple fan]

I'll just choose this one of many similar comments to point out that just about anyone can be an Apple stockholder. It's not like you're buying Berkshire Hathaway for $10,000 a share. If you have any retirement savings at all just buy a couple on the dips and it'll probably be the best investment you can make as a casual investor.

Even for stocks worth $400k/share like Berkshire Hathaway’s Class A it’s still pretty easy for anyone to buy some as fractional shares for as little as a dollar.

 

[ian87w]

Like I predicted, 14 Max will be best seller. Tim Cook knows it.

 

[BuddyTronic]

What are "macroeconomic headwinds"? I took that to mean that the industries and markets that generally purchase Apple's "wearables, home and accessories" products themselves are changing or volatile markets that are being affected by other factors, thus making it harder for Apple to sell said products. Not sure, though.

Nope. It’s big stuff like currency fluctuations adding small percentages to costs. “Supply chain” inefficiencies and calamities are also macroeconomic headwinds.

Headwinds are like weather. The company cannot control the weather. Sometimes they get tailwinds too!

 

[Admiral]

Is it me or is Tim Cook looking more muscular?

The Silicon Valley billionaire lifestyle includes personal assistants, personal chefs, and personal trainers. Tim Cook has just recently eked past billionaire status (but just barely). By the standards of Silicon Valley value destruction, for the life of me I don't understand why Apple shareholders haven't awarded Cook $100-150 billion. He's been berry berry good to us. Tim Apple has presided over an increase in market capitalization from US$345.32 billion on August 1, 2011 (which itself was astonishing) to US$2.4 trillion today after recent market downtrend.

Imagine the muscles if he had $100 billion.

 

[jchap]

Nope. It’s big stuff like currency fluctuations adding small percentages to costs. “Supply chain” inefficiencies and calamities are also macroeconomic headwinds.

Headwinds are like weather. The company cannot control the weather. Sometimes they get tailwinds too!

Interesting. Thanks for that informative explanation. The "headwinds" simile you mentioned comparing it to the weather makes sense now. Largely uncontrollable factors.