Apple Beats Q3 Earnings Expectations... Revenue Declines for Four Consecutive Quarters

iPhone and Service Segment Performance Improvement
Apple Stock Falls 0.83% in After-Hours Trading

iPhone manufacturer Apple recorded a decline in sales for the fourth consecutive quarter despite strong performance in iPhone sales and services. This was due to a significant drop in sales of products other than the iPhone.

[Image source=Yonhap News]

On the 2nd (local time), after the New York Stock Exchange closed, Apple released its third-quarter results (fourth quarter of the fiscal year). Revenue was $89.5 billion, down 1% from the same period last year, while net profit increased by 11% to $22.96 billion. Earnings per share (EPS) were reported at $1.46. These results exceeded the financial information firm LSEG’s (formerly Refinitiv) forecast of $89.28 billion in revenue and $1.39 EPS.

The market focused on the decline in revenue. Although the results were better than expected, concerns arose over the fact that revenue has been shrinking for four consecutive quarters since the fourth quarter of last year. Over the past year, Apple’s total revenue was $383.29 billion (511.3 trillion KRW), a 3% decrease compared to the previous year.

Among Apple’s product lines, iPhone sales increased by more than 2% compared to a year ago. Revenue from iPhones was $43.81 billion, in line with market expectations. The quarterly results also included one week of sales from the iPhone 15, which was announced last September.

However, sales of other devices excluding the iPhone all declined. iPad revenue was $6.44 billion, exceeding the expected $6.07 billion, but it was 10% lower than in the third quarter of the previous fiscal year. Mac series revenue, including laptops and PCs, was $7.61 billion, falling significantly short of the expected $8.63 billion. This represented a 34% decrease compared to a year ago. Revenue from wearables such as the Apple Watch was $9.32 billion, below Wall Street’s forecast of $9.43 billion. After the third-quarter earnings announcement, Apple had forecasted in its conference call that iPad and Mac sales would decline by double-digit percentages.

Revenue from the online services segment grew 16% year-over-year to $22.31 billion, surpassing Wall Street’s expectations. Performance improved across all major services, including App Store sales, advertising, iCloud, payment services, and Apple Music.

As of 8:57 a.m. (Korean time) on the day, Apple’s stock price was down 3.47% to $171.40 in after-hours trading. During regular trading hours, it closed up 2.07% at $177.57.

This content was produced with the assistance of AI translation services.