Apple Q3 FY2023 Earnings Note
[Rewards] Apple sees Q3 sales drop continuing, but service revenue grows 8%
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KEY Figures:
● Total sales were $81.8 billion vs. $81.7 billion estimated, according to Refinitiv consensus estimates, down 1% YoY (year-over-year).
● iPhone revenue was $39.7 billion vs. $39.9 billion estimated, down 2% YoY. Services revenue was $21.2 billion vs. $20.8 billion estimated, up 8% YoY.
● Net income was $19.9 billion with an increase of 2% YoY, and the quarterly diluted earnings per share (EPS) was $1.26, up 5% YoY.
● The Gross margin was 44.5% vs. 44.2% estimated, and the figure was 43.3% a year ago at the same time.
● Apple generated a strong operating cash flow of $26 billion, and returned over $24 billion to its shareholders during this quarter.
● For the Q4 FY23 Outlook, Apple's CFO expects the sales results to be similar to the June quarter, where overall revenue fell over 1% YoY, to be about $89.25 billion. Meanwhile, Refinitiv analysts were projecting Q4 revenue to be $90.19 billion.
More statistics: Company Stock Performance
*Source: Apple IR financial statements.
KEY Points:
● "We had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone," said Tim Cook, Apple's CEO.
● Tim Cook said Apple is "very excited" about its Vision Pro. "Everyone who has gone through the demos has been blown away," said this CEO. "We're looking forward to shipping it in 2024.
● Apple's all-time revenue records were set in Applecare, video, cloud, and payments. Its Service subscriptions have grown by 150 million in the last year and more than doubled over the previous three years.
● Global smartphone sales have fallen for eight consecutive quarters, and this quarter is the third straight quarter of Apple's overall device sales declines. However, there is a testament to Apple's extremely high levels of customer satisfaction, which 451 Research measured at 98% for the iPhone 14 family in the US. Apple introduced a new iPad Air during this quarter. Mac revenue was $6.8 billion, and almost half of Mac buyers in the quarter were new to the product.
● Across Wearables, Home and Accessories, revenue was $8.3 billion, up 2% YoY and in line with the company's expectations. Two-thirds of new Apple Watch customers were new to the product during this quarter.
● Unlike other Big Tech companies, Apple's revenue primarily comes from hardware sales currently, and it seems iPhone 15 cycle is in sight.
The KEY in your hands:
By August 4, 2023, Apple shares had risen more than 40.4% since the beginning of 2023, outpacing the S&P 500 (.SPX), which was up about 16.6% during the same period (Source: moomoo APP).
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Disclaimer
Comments above are made available for informational purposes only. Before investing, please consult a licensed professional. *Source of data: https://news.moomoo.com/notice/149417428; Apple's earnings conference call; Investopedia* This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Before investing, please consult a licensed professional. See this link for more information.
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Srikanth Reddy : I think it's an opportunity. Service is a better business.
romancer :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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mr_cashcow : Recent years apple have expanded their subscription based services such as appleTV+ & their lesser known apple arcade both have very big potential so definitely an opportunity here just have to stick with them a while more, I definitely enjoyed a lot of their TV series and hope more people join in
CashPetty : This is good opportunity to accumulate the qty or buy on dips. Upcoming 2 quarter will see sharp jump on sales and profit. Soon in September iphone15 and other products being launched. Happy investing! ETP (Expected Target price) : USD 220 - 250
quekky : When the price of the stock goes down, add more in. If the company have a good fundermential, their stock will go up eventually in long term.
Moon fairy 大炮仙 ❤ : I will keep staring at the Apple tree and wait for it to drop. If wait too long don't drop then i will climb up the tree to pluck apple.
Asphen : Good opportunity to add below 150
Miu Mei Mei : I am optismistic about the future for Apple. To show my optismism, I ditched my Oppo Android mobile phone to Apple iPhone 14 last week.
Ah keong : 1. Service revenue reached a record high
This is a positive sign that Apple is successfully shifting its business to more stable and profitable service businesses, such as Apple Music, iCloud, App Store, etc.
It also reflects Apple's growing ecosystem and may help offset fluctuations in hardware sales.
2. Significant increase in revenue in Greater China
This may be due to the influence of the Apple brand in China and the quality and design of its products, which have attracted a large number of Chinese consumers.
However, it also reminds us that Apple's performance in the Chinese market may be affected by macroeconomic factors, policy changes, competition conditions, etc.
3. Year-on-year decline in total revenue and decline in hardware product line revenue
This is due to a variety of factors, such as production and sales difficulties due to global supply chain issues, market saturation, and competitor challenges.
In particular, the sharp decline in iPad revenue may be due to the cost performance advantage of competitors' tablet products or changes in consumer demand for tablets.
相拥这个季节 CashPetty : Yes, save your cash and be ready to copy the bottom of Apple
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