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The big picture: Apple in its most recent quarter reported revenue of $83 billion for the fiscal third quarter ending June 25, an increase of 1.87 percent compared to the year-ago period. Profit, however, was down 10.59 percent – from $21.74 billion to $19.44 billion – due in part to continued supply constraints and Covid-related shutdowns in China as well as negative foreign exchange rates.
Earnings per share dropped to $1.20 from $1.31 during the same period last year but still beat FactSet estimates of $1.16 per share. Apple's board also declared a cash dividend of $0.23 per share that is payable on August 11.
iPhone sales revenue increased 2.77 percent year-over-year to $40.67 billion. Its services division saw even more impressive growth of 12.11 percent, from $17.49 billion in Q3 2021 to $19.6 billion in the most recent three-month period.
Revenue from the sale of Macs, iPads and devices in the wearables, home and accessory categories was down this quarter compared to the same period last year. Macs were hit the hardest as revenue dropped more than 10 percent to $7.38 billion in Q3. Revenue from the wearables category dipped 7.87 percent to $8.08 billion and iPad revenue slid 1.95 percent to $7.24 billion.
The second half of the year is usually the strongest for Apple, and that isn't expected to change this time around. The next generation of iPhones is expected to debut in mid-September and launch a week or so later. They likely won't have an impact on fiscal Q4 earnings due to timing, and will instead be reflected on the following earnings report.
In a conference call with investors, Apple CFO Luca Maestri said that given the continued uncertainty around the world in the near term, they aren't providing revenue guidance for the upcoming quarter. That said, Apple does believe year-over-year revenue growth will accelerate during the September quarter compared to the June quarter. And on the product side, Maestri said Apple expects supply chain constraints to be lower than what was experienced in fiscal Q3.
Image credit: Karolina Grabowska