Apple Beats Wall Street Expectations in Q4 With $89.5 Billion in Revenue Due to iPhone Sales and All-Time High Services Revenue
Largely thanks to sales of the iPhone and its Services segment, Apple beat Wall Street expectations during its fourth quarter of fiscal year 2023. During its fourth quarter, Apple reported a net income of $22.96 billion, or diluted earnings of $1.46 per share. Revenue grew to $89.5 billion, the company announced Tuesday.
According to analysts surveyed by Zacks Investment Research, the tech giant was expected to report earnings of $1.39 per share and revenue of $89.03 billion.
Quarterly revenue of $89.5 billion was down by 1% year over year. Similarly, quarterly earnings per diluted share were up 13% year over year.
As for the Product and Services divisions, net sales on the product side totaled $67.18 billion, a drop of roughly $3.78 billion compared to last year’s figures. The 2022 fourth quarter net sales on the Product side totaled roughly $70.96 billion. On the Services side — a segment that includes Apple TV+, Apple Arcade, Apple Fitness+, Apple News+, Apple Music and iCloud — the company reported $22.31 billion in net sales. That’s about a $3.13 million increase from last year’s amount ($19.18 billion).
“Today Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in Services,” Apple CEO Tim Cook said in a press release for the company. “We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030.”
Once again, sales of the iPhone and company’s Services segment were two major financial factors this quarter. The iPhone still remains the company’s biggest contributing factor to revenue. Last quarter, the device accounted for 48.5% of net sales. That time period also saw year-over-year sales decrease by 2.4% to $39.67 billion.
As for its Services segment, the company saw an 8% year-over-year increase in revenue during the third quarter of this fiscal year. During that time period, the division hit a record $21.2 billion, which was driven largely by over 1 billion paid subscriptions to its services — a jump of 150 million during the last 12 months.
In 2022, Apple beat Wall Street expectations in its fourth quarter when it came to revenue and earnings per share but fell short of expectations when it came to key product categories, which included the company’s iPhone and business services.
More to come…
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