In brief: Apple's fiscal fourth-quarter earnings results have shown Cupertino is doing better than most tech giants during the current global economic slowdown. The company has beaten analysts' expectations for overall revenue and profit, though it missed predictions in some key areas, including iPhone revenue. Apple owes a lot of thanks to its Mac line, which saw revenue increase by over 25%.
Apple's revenue for the most recent quarter was up 8.1% year-over-year to $90.15 billion, beating estimates of $88.9 billion. Net profit was $1.29 a share, higher than the average analyst estimate of $1.27 a share.
It was a bit of a mixed bag for the iPhone. While revenue from Apple's handsets was up 9.67% YoY, the $42.63 billion figure still missed the expected $43.21 billion. Apple Chief Financial Officer Luca Maestri said the iPhone sold in record numbers during September, beating the company's own expectations.
"We did better than we anticipated, in spite of the fact that foreign exchange was a significant negative for us," Maestri said. It'll be interesting to see if reports of Apple cutting iPhone 14 production affects things going forward.
iPhone sales seem even more impressive when you consider market research firm Canalys recently revealed that the global smartphone market shrank for the third consecutive quarter during the three-month period ending September 30. It was down 9%, making it the worst Q3 since 2014.
The iPads had a tough quarter. Apple's tablet revenue was down 13.06% YoY to $7.17 billion, missing expectations by almost $800 million. The 10th-generation iPad and the M2 iPad Pro launched earlier this week, so we'll have to wait and see how they impact sales.
Nvidia, Intel, and Amazon are just some of the tech titans that have been feeling the impact of rising inflation and conservative consumer spending. Meta has been hit particularly hard—its net income in Q3 was down 52% to $4.4 billion, wiping billions off the Facebook/Instagram parent's value overnight.
Apple managed to weather the storm primarily thanks to its Mac sales. Revenue was up 25.39% YoY to $11.51 billion, way above the $9.36 billion estimate, likely helped by the M2-powered MacBook Air and 13-inch MacBook Pro that launched over the summer and received mostly excellent reviews.
Apple's Other Products unit, which includes the Apple Watch and AirPods, was up almost 10% and beat estimates, while services was up nearly 5% but missed estimates by around $1 billion.