Apple reports record revenue but disappoints on iPhone and services
Apple (AAPL) reported its fiscal fourth-quarter earnings on Thursday, reporting record revenue but missing analysts' expectations in key categories such as iPhone and services.
Here are the numbers that came down Thursday from the iPhone-maker, as compiled by Bloomberg.
Revenue: $90.15 billion actual versus $88.64 billion expected
EPS: $1.29 actual versus $1.26 expected
iPhone: $42.63 billion actual versus $42.67 billion expected
Mac: $11.5 billion actual versus $9.25 billion expected
iPad: $7.17 billion actual versus $7.81 billion expected
Wearables: $9.65 billion actual versus $8.8 billion expected
Services: $19.19 billion actual versus $19.97 billion expected
Apple shares were down as much as 3% in after-hours trading. The company's stock was down almost 16% year-to-date as of market close Thursday, just before reporting earnings.
While the beats on revenue and Mac sales are encouraging, the iPhone and iPad numbers could be concerning for investors. Recently, Apple has gotten hammered amid reports that the company is cutting back Phone 14 Plus production and as it negotiates a difficult week for tech overall.
Apple released its iPhone 14 and Apple Watch Series 8 line in September. The iPhone 14 Pro and iPhone 14 Pro Max packed better displays, processors, and cameras than the less expensive iPhone 14 and iPhone 14 Plus.
The Pro and Pro Max could help Apple see a higher average selling price on its smartphones, which could compensate for a potential decline in overall sales. Apple also recently announced that it's raising the prices on its services including Apple Music+, Apple TV+, and its Apple One combo. Apple Music+ went from $10 to $11 for an individual plan, Apple TV+ went from $5 to $7, and Apple One went from $15 to $17.
Apple, like most tech companies, is also dealing with foreign exchange headwinds caused by a strong dollar, which is eating into overall revenue. Tech companies like Apple are also getting squeezed by a hawkish Fed, persistent inflation, and a consumer slowdown that's led to muted expectations for the upcoming holiday season.
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