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Apple Dodges Dark Clouds Over Big Tech in Last Quarter • The Register

Apple has bucked negative sentiment in a difficult week for big tech companies by matching analysts’ revenue estimates for the most recent quarter, but the company too is now warning of economic surges ahead.

For the fourth quarter ended September 30th [PDF], Apple showed that gadget craze for its devices is holding up relatively well: Revenue rose 8.1 percent year-on-year to $90.15 billion. CEO Tim Cook said it would have grown double digits had the dollar not been strong.

“We broke another record for our installed base of active devices, thanks to a record quarterly upgraders and double-digit growth in iPhone switchers,” said Cook. “I am also pleased to report that silicon-related supply shortages were not significant during the quarter.”

Product sales increased 9 percent to $71 billion. The iPhone brought in $42.63 billion in revenue, up 9.67 percent, albeit lower than analysts’ forecasts. However, Mac revenue rose 25.39 percent to $11.51 billion, well above the consensus of market watchers.

CFO Luca Maestri said sales were boosted by the launch of the latest MacBook Air and MacBook Pro powered by the M2 chip and “we were able to meet pent-up demand resulting from significant supply shortages in the June quarter . “

Cisco, which allied with Apple years ago, offered Macs to all employees to “help attract and retain top talent,” the manager claimed.

In line with the broader tablet market, iPad sales fell 13 percent to $7.2 billion. Maestri said it was a “challenging comparison given the launch of new iPads a year ago.” The latest iPad was announced last week.

Demand for Apple wearables, home and accessories remained strong, with sales up 10 percent to $9.7 billion, driven by new Watch buyers and a refreshed AirPod Pro pair of headphones.

Services grew 5 percent to $19.2 billion and more than 900 million paid subscribers are on the Services platform. However, Apple noted a certain “softness” in digital advertising spend.

Operating income for the quarter was $24.9 billion compared to $23.78 billion a year ago.

For the year, Apple reported revenue of $394 billion, up 8 percent, and operating income of $119 billion.

Other big technology providers released their financial numbers this week, including Meta, Microsoft, Google and AWS. More than $550 million was wiped out of the value of big tech stocks, with Meta hardest hit: Plunging ad sales and no end to Mark Zuckerberg’s Metaverse vanity project made Wall Street impatient.

Apple again declined to provide financial guidance for the next quarter — a trend that began early in the pandemic when forecasting became an even more difficult art form.

Maestri warned that revenue growth will “slow down,” partly due to the strong dollar, meaning lower revenue recognition from overseas sales and a difficult year-on-year comparison for Macs following the launch of the redesigned Mac late in calendar 2021. ® Apple Dodges Dark Clouds Over Big Tech in Last Quarter • The Register

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