Apple (AAPL) announced its fiscal Q3 earnings after the bell on Thursday, missing analysts’ expectations on worse-than-expected iPhone sales. Revenue fell 1.4% year over year, marking the third consecutive period of declines.
Revenue has slid for multiple quarters as Mac and iPad sales have flagged. The $3 trillion tech giant offered further insight into global consumer demand and another window into the performance of a US tech sector grappling with inflation and higher interest rates.
Services was a bright spot, beating projections and posting 8% growth from the year-ago period, reaching a new all-time high for the segment. The company also beat expectations for overall revenue and earnings per share.
Here’s some of Apple’s most significant metrics compared to what Wall Street was expecting in the company’s fiscal third quarter, according to data from Bloomberg:
Revenue: $81.80 billion versus $81.55 billion expected ($82.96 billion in Q3 2022)
Adj. EPS: $1.26 versus $1.20 expected ($1.20 in Q3 2022)
iPhone revenue: $39.67 billion, versus $39.79 billion expected ($40.67 billion in Q3 2022)
Services revenue: $21.21 billion versus $20.77 billion expected ($19.60 billion in Q3 2022)
Mac revenue: $6.84 billion versus $6.37 billion expected ($7.38 billion in Q3 2022)
iPad revenue: $5.79 billion, versus $6.33 billion expected ($7.22 billion in Q3 2022)
Wearables revenue: $8.28 billion versus $8.38 billion expected ($8.08 billion in Q3 2022)
Apple shares slid 1.3% to $188.68 in after-hours trading following the report.
“We are happy to report that 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 CEO Tim Cook.
iPhone sales account for about half of the company’s overall revenue. The quarterly report arrived just weeks ahead of Apple’s new hardware lineup, including the iPhone 15 and the next slate of smartwatches.
Apple’s earnings, which arrived alongside Amazon’s, round out the quarterly reports from the major tech companies, following better-than-expected results from Meta (META) and Alphabet (GOOG, GOOGL) and a revenue miss from Microsoft last week. The tech sector has surged this year, riding optimism on cutting-edge AI technology, the resiliency of online advertising, and growth in cloud services. After wrapping up July, the tech-heavy Nasdaq Composite (^IXIC) won its fifth straight month of gains, and is up almost 40% for the year.
Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on Twitter @hshaban.
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