Summary
Apple Inc. reported net sales of $117.15 billion for the quarter ended December 31, 2022, a decrease of 5% compared to the prior year's quarter. This decline was primarily driven by an 8% drop in iPhone sales ($65.78 billion) and a significant 29% decrease in Mac sales ($7.74 billion), impacted by macroeconomic factors like foreign currency fluctuations and supply chain disruptions related to COVID-19. Despite the overall revenue dip, the Services segment demonstrated resilience, growing 6% year-over-year to $20.77 billion, highlighting its increasing importance to Apple's business model. Gross margin also saw a slight decrease to 43.0% from 43.8% in the prior year. The company continued its robust capital return program, repurchasing $19 billion of its common stock and paying $3.8 billion in dividends. While facing some headwinds, Apple's strong Services growth and ongoing capital returns provide a degree of investor confidence.
Financial Highlights
51 data points| Revenue | $117.15B |
| Cost of Revenue | $66.82B |
| Gross Profit | $50.33B |
| R&D Expenses | $7.71B |
| SG&A Expenses | $6.61B |
| Operating Expenses | $14.32B |
| Operating Income | $36.02B |
| Interest Expense | $1.00B |
| Net Income | $30.00B |
| EPS (Basic) | $1.89 |
| EPS (Diluted) | $1.88 |
| Shares Outstanding (Basic) | 15.89B |
| Shares Outstanding (Diluted) | 15.96B |
Key Highlights
- 1Total net sales decreased by 5% to $117.15 billion compared to the prior year's quarter, primarily due to a 5% decline across all geographic segments.
- 2iPhone sales fell 8% to $65.78 billion, and Mac sales dropped a significant 29% to $7.74 billion, impacted by foreign currency headwinds and supply chain issues.
- 3The Services segment showed resilience, with net sales increasing by 6% to $20.77 billion, driven by growth in cloud services, the App Store, and music.
- 4Gross margin decreased to 43.0% from 43.8% year-over-year, with product gross margin declining due to currency effects and lower volumes, and services gross margin also affected by currency and increased costs.
- 5Operating expenses increased, with R&D up 22% and SG&A up 2%, largely due to headcount increases.
- 6Apple returned $22.8 billion to shareholders in the quarter through $19.0 billion in share repurchases and $3.8 billion in dividends.
- 7The company reported a net income of $29.998 billion, a decrease from $34.630 billion in the prior year, resulting in diluted earnings per share of $1.88, down from $2.10.