- Kyle Chua
Apple Posts Record Revenue Amid Economic Storm Affecting Tech Industry
Apple appears to be quite doing well for itself amid the tech industry storm, posting record revenue in its fiscal fourth quarter earnings.
The Cupertino tech giant tallied US$90.1 billion in revenue, with a net profit of US$20.7 billion, which is above expectations. Revenue was up eight percent versus the same period last year, buoyed by the year-over-year growth of different divisions.
There are, however, conflicting reports about the performance of the new iPhones, as The Verge reports. This year’s standard models, the iPhone 14 and iPhone 14 Plus, have reportedly sold below Apple’s expectations, and it’s now backtracking on an earlier decision to ramp up production. Majority of consumers are upgrading to the more expensive 14 Pro and 14 Pro Max, which ship with a redesigned interface, a faster processor and an upgraded camera system.
Still, iPhone sales were relatively good, helping boost Apple's revenue from US$38.9 billion last summer to US$42.6 billion this quarter. Services similarly saw growth, with Apple Music and TV+ setting a new record of US$19.2 billion, a small jump from last year’s US$18.3 billion. Apple Watch and smart home device sales also grew from US$8.8 billion to US$9.7 billion.
The only division that saw a decline in sales was the iPad, which fell from US$8.3 billion last year to US$7.2 billion this year. Despite this, Apple believes there’s still a strong market for its line of tablets. CFO Luca Maestri said during the earnings call that about half of Mac and iPad buyers were new to the platform.
Apple also expects iPad sales to jump in the next fiscal quarter thanks to the launch of new models earlier this month. iPhone sales could additionally improve as the company’s new flagships had only been available for just eight days during this past quarter. The company is expected to release refreshed 14-inch and 16-inch MacBook Pros in the coming weeks, so Macs could also grow in the next quarter.
Apple tallied US$90.1 billion in revenue, with a net profit of US$20.7 billion in its fiscal fourth quarter earnings.
Revenue was up eight percent versus the same period last year, buoyed by the year-over-year growth of different divisions.
Chief of which are iPhone sales that grew from US$38.9 billion last summer to US$42.6 billion this quarter.
The only division that saw a decline in sales was the iPad, which fell from US$8.3 billion last year to US$7.2 billion this year.