Apple (AAPL) will likely report lower revenue and earnings compared to a year ago as sales of some of its iconic products, including iPhones, iPads, notebooks, and Mac computers, decline.
- Apple will likely report a $22.6 billion profit, or $1.43 per share, which is down 9.5% from the same period last year.
- Revenues are projected to have fallen 4.5% to $92.92 billion, as sales of the company’s iconic products, including iPhones, iPads, Macs, and notebooks decline.
- On a positive note, revenues from Apple Services and the iTunes store are projected to hit a record.
The tech behemoth, which is the most valuable company in the U.S. with a market cap exceeding $2.6 trillion, will likely report net income of $22.62 billion, or $1.43 per share. That's down 9.5% from the same quarter last year, according to estimates from Visible Alpha.
Projected revenues of $92.92 billion will be 4.5% lower than the year-ago quarter, dragged down by falling sales of the company’s flagship products. Apple reports its fiscal second-quarter earnings on Thursday, May 4 after markets close.
|Apple Key Metrics|
|Q2 FY 2023 (Projected)||Q2 FY 2022||Q2 FY 2021|
|iPhone Sales ($M)||48,974||50,570||47,938|
|Total Revenue ($M)||92,917||97,278||89,584|
|Net Income ($M)||22,618||25,010||23,630|
Demand for the company’s flagship products, including iPhones, iPads, Mac computers, and notebooks waned in the fiscal second quarter, with particularly large declines for the latter two products. iPhone sales likely fell 3.2% year-over-year to just under $49 billion, with iPad sales estimated to be down 12.5% to $6.69 billion.
Sales of notebooks and Macs likely recorded the biggest losses, down 22.9% and 25.2% year-over-year, respectively. Sales of iPods, first introduced more than two decades ago, have been falling for years as iPhones and newer products have rendered them increasingly obsolete. They were probably down 37% from the year-ago quarter. Seasonality was a likely headwind for product sales in the latest quarter.
Last year, the company launched its iPhone 14 Generation, new Apple Watch models, AirPods Pro, the iPad Pro, and a third-generation Apple TV 4K.
Revenue from Apple’s iTunes store likely rose 37.5% from a year ago to a near-record $3.18 billion. Revenue from services, which encompasses the App Store, iCloud, Apple Music, Siri, product repair services, and other features, is also forecast at a record $21 billion. However, growth in the segment likely slowed to a 6% annual pace, down from 17.3% in the year-ago quarter.
Apple shares are up 29% so far this year, outperforming a 21% gain in the broader S&P 500 information technology sector over the same period.
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