Apple’s Profits Jump 11% While Total Sales Drop Slightly

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In its 2023 fiscal fourth quarter, Apple reported a net profit increase of 10.7% annually despite a slight drop in total sales.

The American technology company’s net profit until September 30 rose to over $22.95 billion due to a surge in the sales of iPhone and services business.

However, the company’s revenue dropped around 1% on an annual basis to roughly $89.49 billion during the quarter, surpassing analysts’ prediction of $89.28 billion, marking Apple’s yearly drop in sales four consecutive quarters in a row.

According to’s senior analyst, Jesse Cohen, Apple’s quarter results were “underwhelming” despite a slight increase in “iPhone sales and another strong performance in its services business.” Cohen added that investors expected more from Apple since the company is held to higher standards in the tech industry.

Apple did not issue a statement regarding its future revenue and profits. The company stopped offering guidance around the onset of the COVID-19 pandemic due to the uncertain business landscape. However, Tim Cook, Apple’s chief executive, revealed the company has the strongest product line-up ever, including the iPhone 15 series and its first carbon-neutral Apple Watch models, calling it “a major milestone” in Apple’s efforts to make all products carbon neutral by 2023.

The technology giant’s diluted earnings per share jumped 13.1% Y-o-Y to $1.46, performing better than the estimated $1.39. The company’s stock, which surged approximately 42% since the beginning of the year, was traded 0.72% less at $176.30 per share during after-market hours.

Furthermore, Apple’s market value reached $3 trillion in June, cementing its status as the world’s most valuable company. Its market value stood at $2.78 trillion after the market closed on Thursday, with iPhone sales accounting for around 49% of the total revenue.

The sales of smartphones increased nearly 2.7% to over $43.80 billion in the quarter compared to the previous year’s period.

Apple’s total revenue from its services grew around 16.3% yearly to more than $22.31 billion. Meanwhile, the revenue from other products, including wearables, home, and accessories, declined 3.4% annually to over $9.32 billion. Revenue from iPads and computers also experienced a decline, dropping almost 25% and crossing $14 billion.

America’s region added more than 44% to Apple’s fourth-quarter revenue, exceeding $40.11 billion. Europe and the Greater China market (comprising China, Hong Kong, and Taiwan) accounted for $22.46 billion and $15.08 billion, respectively. Japan and other Asia Pacific markets added over $11.83 billion to Apple’s fourth-quarter sales, with a yearly drop of 2%.

According to Cohen, Apple’s performance in China sales indicates the demand for Apple’s high-end iPhones is “slowing more than expected in the face of rising competition from local companies, including Huawei.” He added that this drop poses the question of whether the decline is “just a blip or signs of a bigger shift among consumers as rising interest rates and a weaker economic backdrop discourage consumers from making pricey purchases.”

Apple’s Chief Financial Officer, Luca Maestri, said Apple’s business performance rose to double-digit EPS (earnings per share). He added that Apple expects its December revenue to be similar to last year’s quarter but did not present specific figures.

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