Demo
AAPL Nasdaq· Apple Inc.
FundamentalsNews digest Peer analysis
Login
AAPL Nasdaq· Apple Inc.
Earnings report Q4 2023

Apple Sees Modest Revenue Growth Amid Strong iPhone and Services Sales

Segments of Revenue

Apple's total net sales for the quarter were $119.57 billion, a 2% increase from the same period last year. The iPhone segment led the way with $69.7 billion in sales, up 6% from the previous year. Services also saw a significant increase, with sales rising 11% to $23.12 billion. However, not all segments performed as well. Mac sales remained relatively flat at $7.78 billion, while iPad sales dropped 25% to $7.02 billion. The Wearables, Home and Accessories segment also saw a decrease, with sales falling 11% to $11.95 billion.

Strengths

The company's strengths this quarter were clearly in the iPhone and Services segments. The increase in iPhone sales was primarily due to higher net sales of Pro models, while the growth in Services revenue is a positive sign for the company's ongoing efforts to diversify its income streams. Additionally, the company returned significant capital to shareholders, repurchasing $20.5 billion of its common stock and paying dividends and dividend equivalents of $3.8 billion.

Challenges

Despite the overall growth, Apple faced challenges in several areas. iPad sales saw a significant decrease, primarily due to lower net sales of iPad Pro, iPad 9th generation and iPad Air. The Wearables, Home and Accessories segment also experienced a decline in sales. Furthermore, the company noted that macroeconomic conditions, including inflation, interest rate changes, and currency fluctuations, have impacted its results and could continue to do so in the future.

Noteworthy

During the quarter, Apple announced updates to several of its products, including the MacBook Pro 14-in., MacBook Pro 16-in., and iMac.

Summary

Apple's latest quarter saw modest revenue growth, driven by strong iPhone and Services sales. However, the company faced challenges in its iPad and Wearables, Home and Accessories segments. Looking ahead, macroeconomic conditions could pose additional challenges. Despite these potential headwinds, the company's significant capital return to shareholders and ongoing product updates highlight its continued commitment to driving shareholder value and product innovation.

Source documents

Form 10-Q  filed on Feb 01, 2024
124 pages scanned

Reference data

Company financials Q4 revenue 90.75B
Analyst estimates Q4 EPS missed by -27.25%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.