Nov 2, 2023 - Technology

Apple earnings narrowly top expectations

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Image: Apple

Apple on Thursday posted quarterly earnings that topped expectations as its total revenue and iPhone sales came in about where most analysts had predicted.

Why it matters: Sales of the iPhone drive results not only for Apple but also for the many companies whose components go into the world's leading smartphone.

By the numbers:

  • Per-share earnings: $1.46 (vs. $1.39 expected per CNBC, citing LSEG — formerly Refinitiv)
  • Revenue: $89.5 billion (vs. $89.28 billion expected)
  • iPhone revenue: $43.8 billion (matching expectations)
  • Mac revenue: $7.6 billion (vs. $8.6 billion expected)
  • iPad sales: $6.4 billion (vs. $6.1 billion)
  • Services revenue: $22.3 billion (vs. $21.4 billion)
  • Wearables and accessories revenue: $9.3 billion (vs. $9.4 billion)

Between the lines: Sales rose in the Americas compared with a year ago, but were down slightly in all of Apple's other geographic regions.

What they're saying: CEO Tim Cook said that both iPhone and services revenue came in ahead of the company's expectations.

  • "We continued to face an uneven macroeconomic environment, including foreign exchange headwinds," Cook said on the conference call. "We've continued to invest in the future and manage for the long term."
  • Cook said the significant drop in Mac sales from a year ago was due to both strong year-ago results as well as what he described as "challenging market conditions."

What's next: Apple expects its revenue for the current quarter to be similar to last year, despite the fact that last year's holiday quarter included an extra week of sales, CFO Luca Maestri said on a conference call with investors.

  • This quarter's iPhone revenue should be up from last year, Maestri said. Mac revenue should accelerate this quarter compared to September, while iPad and wearables sales will decelerate, Maestri said.
  • Cook acknowledged the company is investing in generative AI but declined to offer specifics on when and where the technology will show up. "We're investing quite a bit," he said. "We're going to do it responsibly."

Editor's note: This story was updated with details from the company's earnings conference call.

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