The business made more money, but profitability plummeted.
Apple is carrying on its record-breaking streak after a great quarter earlier this year. The business is reporting a record revenue of $83 billion, up 2% from the same period last year, according to financial figures released today. In addition, Apple said that "in every geographic group and product category," its installed base of active devices had achieved an all-time high. Even though the company's iPhone sales continued to climb, its profits are down a whopping 11%, and sales of Macs and wearables also declined.
It's important to keep in mind that Apple's recently unveiled MacBook Air with M2 chip has only recently begun shipping, so the number of Macs will probably rise next quarter. It's also conceivable that users are delaying purchases in order to wait out the continuous inflation, especially in light of the devices the firm anticipates releasing in the fall.
"This quarter's record results speak to Apple's constant efforts to innovate, to create new possibilities, and to enrich the lives of our customers," Apple CEO Tim Cook stated in a news release. "Our June quarter results continued to illustrate our ability to run our business successfully despite the adverse operating environment," the company's CFO Luca Maestri remarked.
Cook stated on the company's results call that the June quarter saw a record amount of people switching to the iPhone and for revenue. In fact, year over year iPhone sales increased from $39.6 billion to $40.7 billion. When asked whether consumer demand for iPhones was impacted by inflation, Cook responded that while there was no evident evidence of this, "Mac and iPad were so limited by supply that we didn't have enough goods to evaluate the demand." However, he added, "we did have effect there that we would credit to the macroeconomic situation" for the wearables, home, and accessories categories.
Cook added that this year's WWDC was "a reminder of the economic miracle the App Store represents" as he discussed how the firm was able to welcome developers to Apple Park.
The iOS app economy, he continued, "supports more than 2.2 million employment here in the United States and many more throughout the world." According to Cook, Apple banned "almost 1.6 million hazardous and susceptible apps and app updates" and stopped "roughly 1.5 billion dollars in fraudulent transactions." According to Maestri, Macs brought in $7.4 billion "Despite limitations on supply.
"This quarter saw a new peak for the iPad install base, with more over half of subscribers being brand-new customers. According to Maestri, "we experienced foreign exchange headwinds, differing launch timing for home and accessory goods, supply restrictions, as well as the general macro economic situation." Wearables generated $8.1 billion in revenue, down 8% from the same time last year.
In despite of this, the business achieved a new record for "installed base of devices in the category." According to Maestri, more than two thirds of customers who purchased an Apple Watch during the quarter were first-time customers. With more than 860 million paid subscribers across all of its services, Apple also had excellent performance in its paid subscription products.