Apple has just released its fourth fiscal quarter earnings report, which is among the most anticipated of the week and which investors will be dissecting closely to see how trends like rising inflation and a disappointing start iPhone 14 sales could have on the performance of the world’s most valuable company. A company, by the way, whose performance this quarter was also measured against a record fourth quarter in 2021 – and Apple still managed to post improved revenue.
For the three-month period just ending in September, Apple posted revenue of $90.1 billion. In contrast, Apple in the same period a year ago had revenue of $83.4 billion and EPS of $1.24.
Apple earnings October 2022
Before iPhone maker last earnings report, analysts forecast revenue in the range of $88.6 billion, an estimated increase of 6.3% over the same period last year. In terms of actual results, though? Apple’s revenue was equivalent to earnings per share of $1.29, beating analysts’ consensus estimate of $1.27.
“The results this quarter reflect Apple’s commitment to our customers, pursuit of innovation, and dedication to leaving the world a better place than we found it,” said Apple CEO Tim Cook. , about numbers. “As we head into the holiday season with our most powerful lineup ever, we lead with our values in every action we take and every decision we make. We are deeply committed to protecting the environment, protecting users’ privacy, enhancing accessibility and creating products and services that can unleash the full creative potential of humanity.
With high-end iPhone models doing better in terms of sales and Apple reportedly seeing less than stellar demand in some international markets, it will be even more interesting to see how the company fares in the future. during the quarter following this one. important vacation period. It’s also worth noting that iPhone sales have generally cooled off a bit in recent quarters, though that’s not necessarily a judgment call on Apple, at least not completely.
Part of the current iPhone sales trend is just lazy people like me dragging their feet when it comes to upgrading what’s already a pretty good iPhone (it’s on my list things to do, Tim!). Along the same lines, market researcher IDC described a steeper decline in smartphone shipments this year as the result of “record inflation, geopolitical tensions and other macroeconomic challenges that have significantly dampened consumer demand”.
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Indeed, there’s a bigger story here than one that focuses solely on Apple, with recession angst and an inflationary environment overshadowing the latest earnings reports from other big tech names like Microsoft, Amazon and Alphabet. They and others signaled slowdowns or warned that the near-term economic outlook appeared to be deteriorating.
Today’s Apple earnings report, meanwhile, comes at the end of a week that’s already been packed with Apple news, including everything from confirmation that iPhones will be USB-charged -C at the price of company services like Apple TV Plus ascend – as well as new rules and ad placements for the Apple App Store.
Among other things, the new App Store rules include a clarification that “boosted” social media posts will be subject to Apple’s in-app payments tax, much to the chagrin of companies like Facebook. And in other Apple news, Target this week also announced that it has more than tripled the number of “Apple at Target” store locations in a store this year, with the retailer now offering more than double the space than before that is dedicated to Apple products like iPhone 14, Apple Watch Series 8 and Apple Watch Ultra.
Wall Street, for its part, is particularly fond of Services history at Apple, given that the revenue stream on this score is a bit more reliable and consistent than the ups and downs associated with hardware sales – and predictability is something that’s definitely lacking right now, given that we we are heading into a recession, inflation is way too high and Russia’s invasion of Ukraine is shaking up global energy markets.
iPhones themselves may or may not be fully recession proof, but strong sales of digital services like Apple Music and Apple TV Plus (by the way, when will we get season 3 of Ted Lasso, guys??) should continue. Services revenue this quarter was $19.1 billion, down slightly from analysts’ estimate of $20 billion, a 4.98% year-over-year increase. ‘other.
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