Apple’s Fiscal Report: Insights into Revenue, Product Performance, and Future Strategies

Apple’s stock went up 7% in trading after they revealed their last three months’ earnings and said they would be buying back a bunch of their shares.

The company’s board agreed to buy back $110 billion worth of Apple shares. That’s 22% more than last year, and it’s the biggest buyback ever. Apple’s done buybacks before, but this one’s the largest so far.

But, even though they’re doing well with buying back their shares, their sales dropped by 4%. Specifically, they sold 10% fewer iPhones this year compared to the same time last year. They blame this on last year being good for them, so it’s hard to do better than that.

Apple's Fiscal Report
Apple’s stock surged 7% post-earnings, announcing a $110B stock buyback, surpassing estimates. (Credits: Google Finance)

Here’s how Apple’s recent performance compared to what experts thought:

  • They made $1.53 for each share, while experts guessed they’d make $1.50.
  • They earned $90.75 billion in total, while experts thought they’d get $90.01 billion.
  • Their iPhone sales made $45.96 billion, just a bit lower than the $46 billion experts predicted.
  • They sold $7.5 billion worth of Macs, which was more than expected.
  • iPad sales were lower than expected, at $5.6 billion compared to the estimated $5.91 billion.
  • Their other products made $7.9 billion, slightly below the estimated $8.08 billion.
  • Services brought in $23.9 billion, more than the estimated $23.27 billion.
  • Their profit margin was about as expected, at 46.6%.
iPhone sales declined 10% YoY, attributed to a tough comparison with previous year’s performance. (Credits: iStock)

Apple’s CEO, Tim Cook, didn’t give a formal prediction for the next quarter, but he said they expect their sales to grow a little bit.

Last year, Apple made $81.8 billion in the same quarter, and this year, experts thought they’d make $83.23 billion.

During a meeting with financial experts, Apple’s finance chief, Luca Maestri, said they expect to sell more iPads this year compared to last year. They also think their services, like Apple Music and iCloud, will keep growing like they have been.

In total, Apple made $23.64 billion this quarter, which is a bit less than last year.

Cook explained that last year’s sales were boosted by $5 billion from iPhones that got delayed because of problems caused by Covid. Without that, they would have sold more this year than last year.

The services division shines, with 14.2% growth, contributing $23.9B in revenue. (Credits: iStock)

In terms of products:

  • iPhone sales dropped by 10% to $45.96 billion, but that’s what experts expected.
  • Mac sales went up 4% to $7.45 billion, thanks to their new MacBook Air.
  • Other Products, like the Apple Watch and AirPods, made $7.9 billion, which is less than last year.
  • They launched their new Vision Pro virtual reality headset this quarter, but it’s expensive and not expected to sell a lot.
  • iPad sales dropped by 17% to $5.6 billion. Apple is expected to announce new iPads soon to try to get sales back up.
  • Apple’s services, like Apple Music and iCloud, did well, making $23.9 billion, which is a 14.2% increase.

Sales in China dropped by 8% to $16.37 billion, but that’s better than what experts thought.

Despite all this, Apple is still doing okay. They plan to pay out a dividend to shareholders, and they’re looking forward to making big announcements about new products soon.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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