Updated Oct 27, 2022 - Technology

Apple beats earnings during tech stock meltdown, but outlook cautious

Tim Cook, holding up an iPhone 14 Pro at the product's launch.

Tim Cook, holding up an iPhone 14 Pro at the product's launch. Photo: Justin Sullivan/Getty Images

Apple on Thursday reported quarterly sales and profit that narrowly exceeded estimates as the company managed to weather a variety of economic headwinds.

Why it matters: The report comes as a number of large tech companies have issued dour outlooks amid signs of a significant slowdown.

The company reported per-share earnings of $1.29, up 4% and 2 cents better than some analysts had expected.

  • Revenue was $90.1 billion, up 8% and ahead of consensus analysts estimates of around $89 billion.

Yes, but: iPad sales dropped significantly from a year ago and the iPhone and services revenue numbers were less than some had hoped, CNBC said.

  • “We are still living through unprecedented times,” CEO Tim Cook said on a conference call with analysts, pointing to economic challenges, war in Ukraine, COVID-19 and climate-related crises. "The world continues to be unpredictable."
  • The company did not give specific financial guidance for the current quarter but said it does expect slower year-over-year growth than it saw in the just-reported quarter. CFO Luca Maestri also forecast that Mac revenue will "decline substantially year over year" amid a strong dollar and a tough comparison versus last year, when the company introduced new MacBook Pros.
  • Cook did say that chip shortages were no longer a significant factor this quarter.

By the numbers:

  • iPhone revenue: 42.6 billion
  • Mac revenue: $11.5 billion
  • iPad revenue: $7.2 billion
  • Wearables and accessories revenue: $9.6 billion
  • Services revenue: $19.2 billion

What they're saying: "Our record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop,” Maestri said in a statement.

  • A strong dollar was partly to blame for lower-than-expected services revenue growth, but Maestri told analysts that the company also saw some decreased demand for online advertising and gaming.
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