Apple Q1 FY23

• Revenue -5% Y/Y to $117.2B ($4.5B miss).

💳 Services +6% Y/Y to $20.8B.

📱 Products -8% Y/Y to $96.4B.

• Operating margin 31% (-2pp Y/Y).

• Operating cash flow margin 29%.

• EPS $1.88 ($0.07 miss).

Segments growth in Q1 23:

- iPhone: -8% YoY

- Mac: -29% YoY

- Ipad: +30% YoY

- Wearables, Home & Accessories: -8% YoY

- Services: +6% YoY

Net sales: -5.5%

Summary:

✳️ Apple's fiscal Q1 revenue and EPS miss was the first in at least 20 quarters, if not longer.

✳️ However, the business's fundamentals appear to be strong.

✳️FX masked overall growth, while margins appear to be very healthy.

Thoughts:

There should be an improvement in the firm's financial performance in the coming quarters as the macro improves.

Apple has gradually increased its efficiency and profitability over the years.

Because of its exceptionally high margins, if the services revenue stream can grow further, it could have additional positive effects on profitability.