Thank iPhone demand
Apple reports quarterly profit of $23 billion
November 2, 2023, 10:33 p.m
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Due to the slump in sales of iPads and Mac computers, Apple’s sales fell slightly to $89.5 billion in the past quarter. But a recovery in iPhone demand is cushioning the decline.
With the continued demand for its iPhone, Apple made a quarterly profit of almost $23 billion. The new iPhone 15 went on sale in September, which will primarily play a role in the Christmas business. The iPhone business grew by 2.8 percent year-on-year to $43.8 billion, as Apple announced after the US stock market closed. This was within the expectations of investors.
At the same time, sales of Mac computers fell by a good third to $7.6 billion. Apple is currently trying to boost this with new Macbook models with more powerful chips. However: Sales of Mac computers, whose new generation of processors were introduced just a few days ago, have fallen by a third in the past few months. For iPads, the decline was ten percent.
In the services business, which includes subscription revenue and income from the App Store, sales jumped by a good 16 percent to $22.3 billion.
Apple missed analysts’ expectations in its business in Greater China, where revenue fell by 2.5 percent to around $15.1 billion. If you take out the exchange rate effects, the result is a plus, emphasized Apple boss Tim Cook. “In mainland China, we set a quarterly record for the iPhone. We had four of the top five best-selling smartphones in Chinese cities.”
Recently, its competitor Huawei, which was hit hard by US sanctions, had success there again with a new smartphone. The share temporarily fell by one percent in after-hours US trading. The bottom line is that Apple increased its profit from $20.7 billion in the same quarter last year to $22.96 billion (21.6 billion euros). Sales fell by around one percent to $89.5 billion.