Apple released its financial results for the first financial quarter of 2023, or the fourth quarter of 2022’s calendar year, on February 2, 2023. It recorded a net quarterly profit of $30 billion, or $1.88 per diluted share, on revenue of $117.2 billion.
Comparatively, the prior-year quarter’s third quarter saw $123.9 billion in revenue and net quarterly earnings of $34.6 billion, or $2.10 per diluted share. Analysts had anticipated a smaller decrease in Apple’s revenue, which fell by about 5% year over year. The availability of iPhones was a problem for Apple, and sales of the Mac and wearables both suffered.
Apple Q1 2023 Earnings Explained
Tim Cook, the CEO of the US conglomerate, stated, “As we all continue to navigate a hard market, we are thrilled to have our best array of devices and services ever, and as always, we stay focused on the long-term and are leading with our values in everything we do.” “We hit a significant milestone during the December quarter and are pleased to announce that more than 2 billion active devices are now a part of our expanding installed base.”
According to Apple’s CFO, Luca Maestri, “We reached an all-time sales record of $20.8 billion in our Services division, and despite a challenging macroeconomic climate and considerable supply limitations, we raised total company revenue on a constant currency basis.” While continuing to invest in our long-term growth goals, we generated $34 billion in operating cash flow and returned over $25 billion to shareholders during the quarter.
The board of directors of Apple has decided to pay out a cash dividend of $0.23 per common share of the company. To stockholders with records as of the end of business on February 13, 2023, the dividend will be paid on February 16, 2023. Apple is once again not providing any guidance for the current quarter, which concludes in March, as they have done for the last many consecutive quarters.
Apple had a 5% year-over-year revenue decline, which was more severe than experts had anticipated as the company battled supply challenges with its products, particularly the iPhone, but also with the Mac and wearables. The gross margin for the quarter was 43.0 percent, down from 43.8 percent in the corresponding quarter last year.
For the current quarter ending in March, Apple is once again not providing guidance, as it has done for the past more than two years. At 2:00 PM Pacific, Apple will broadcast a live webcast of its financial results conference call for the first quarter of fiscal 2023.
