Apple reports Q4 revenue down 1% YoY to $89.5B, vs. $89.3B est., net income up 11% to $23B, Americas sales up 1% to $40.1B, and Europe sales down 1% to $22.5B

iPhone revenue sets September quarter record Services revenue reaches new all-time high — Apple® today announced financial results …

Apple 2023-11-03

Context & Ripple Effects

This quarter sits between Apple’s earlier pattern of Services records alongside softer iPhone sales and a subsequent return to companywide growth. The next reported quarter showed 2% revenue growth and stronger European sales, indicating that the regional softness here was not a permanent trajectory in the available coverage.

The key signal is the mix: record iPhone September-quarter revenue and an all-time-high Services result supported higher earnings even as total sales edged lower. That makes monetization of Apple’s installed base as important to the earnings story as unit-driven hardware growth.

First-order effects

Apple beat the reported revenue estimate and increased net income despite a small year-over-year sales decline, reducing the immediate significance of the top-line contraction for its reported profitability.
Record Services revenue gives Apple a larger earnings contribution from its existing device base while Europe is the reported regional drag in the quarter.

Second-order effects

Investors and Apple’s ecosystem partners gain a clearer reason to track Services momentum and regional sales separately from headline revenue, since the quarter shows they can move in different directions.
The later acceleration in Americas and Europe sales suggests that a weak region in one quarter can reverse; quarterly geographic results should not alone be treated as a durable demand ranking.

Third-order effects

If Services continues to set records through uneven hardware cycles, Apple’s valuation and operating narrative will increasingly hinge on revenue generated per active device rather than solely on new-device sales.
The coverage points to a more resilient but more mix-dependent consumer-device model: hardware remains central, while recurring services can cushion growth volatility without eliminating exposure to regional demand shifts.

The trend: Apple’s earnings mix is shifting toward extracting more recurring revenue from its device base while hardware demand varies by region and quarter.

Discussion

@mranthropology.bsky.social Rich Stroffolino on bluesky
Apple made $2944 in profit per second [embedded post]
@epro.social Emil Protalinski on bluesky
$AAPL Q4 2023 — Revenue down 1% to $89.5 billion — Net income up 11% to $23 billion — iPhone revenue up 3% — Mac revenue down 34% — iPad revenue down 10% — Wearables/Home/Accessories revenue down 3% — Services revenue up 16% [embedded post]
@lexnfx Alexei Oreskovic on x
Apple guidance for Dec quarter: iPhone revenue to grow year-on-year on an absolute basis Mac revenue to “accelerate significantly” year over year Wearables and iPad revenue to decelerate significantly due to product timing
@ryanshrout Ryan Shrout on x
Really like these visuals. Apple MADE $23B net profit this quarter...on almost $90B in revenue. In 3 months. That said, centered around recent discussions, the Mac segment revenue was down 34% year on year, which is...a lot. And explains the rush to announce the M3 family of …
@teroterotero @teroterotero on x
Apple down after hours as it guides revenue down -5%. These Yankees still refuse to accept that it isn't growing anymore. The revenue keeps shrinking and Americans cling to this cargo cult of thinking the growth will return. It's like Finns with Nokia in 2008. SAD
@ericjhonsa Eric Jhonsa on x
$AAPL -3.9% AH after guiding for FQ1 revenue to be similar to a year earlier (consensus was +4.6%). iPhone revenue is expected to be up Y/Y. Mac growth is expected to significantly improve from FQ4, while iPad and Wearables, Home and Accessories are expected to do the opposite...…
r/apple r on reddit
Apple reports fourth quarter results
@eshumarneedi @eshumarneedi on threads
Mac sales are down because everyone bought the M1s in 2021 and 2022 and now everybody's good with their computers because the M1s are fantastic. Call me the next Warren Buffett.
@technologizer Harry McCracken on threads
I'm not used to seeing the iPad outperform expectations in Apple's quarterly results, thereby boosting the company during a kinda challenging time. https://www.cnbc.com/...
@asymco@mastodon.social @asymco@mastodon.social on mastodon
Same old, same old. — “Our active installed base of devices has again reached a new all-time high across all products and all geographic segments, thanks to the strength of our ecosystem and unparalleled customer loyalty,” said Luca Maestri, Apple's CFO
@harrymccracken@mastodon.social Harry McCracken on mastodon
I'm not used to seeing the iPad outperform expectations in Apple's quarterly results, thereby boosting the company during a kinda challenging time. https://www.cnbc.com/...
@asymco@mastodon.social @asymco@mastodon.social on mastodon
Smoothed earnings per share and the derivative. — [image]
@rsgnl Joe Rossignol on x
iPhone and Services revenue up. Mac, iPad, and Wearables/Home/Accessories revenue down.
@divestech Dan Ives on x
For Apple we fundamentally care about iPhone growth, Services revenue, gross margins (handily above Street), and China iPhone growth which appears much better than feared along with positive anecdotal commentary from Cook. Lot of noise with weak iPad and Macs for Dec Q, $240 PT🍎
@paulwiggins Paul Wiggins on x
THe fine print: Mac revenue was down 34 percent year over year, with Tim Cook describing the current PC market as ‘challenging.’ But he thinks the M3 lineup should turn things around.
@munster_gene Gene Munster on x
3. Mac was down 34% vs. Street down 25%. September is a throw away quarter for the Mac, I expect growth will rebound to 5% in December, inline with the Street.
@neilcybart Neil Cybart on x
Apple just released earnings. $89.5 billion of revenue $1.46 EPS My estimates were: $88.9 billion of revenue $1.40 EPS Consensus was way back at: $84.2 billion of revenue $1.31 EPS
@munster_gene Gene Munster on x
The company is returning to growth after a year. The customer base is growing which means revenue growth in the 2-5% in the next couple of years should be sustainable.
@neilcybart Neil Cybart on x
Tim Cook: Competitors are unable to match the iPad experience. It's our most versatile product.
@munster_gene Gene Munster on x
5. Gross margins were 45.2% vs. 44.5%, which is the highest level ever. Big Picture: Apple's demand, profit, and user base are intact.
@munster_gene Gene Munster on x
1. Active install base “reached a new all-time high across all products and all geographic segments”. That means the flywheel and the thesis that Apple is a consumer stable company is intact.
@mgsiegler M.G. Siegler on x
Can't imagine why the Mac —and only the Mac — was the focus of an event two days ago...
@stevemoser Steve Moser on x
Apple's Mac and China revenue were lower than expected this quarter.
@rsgnl Joe Rossignol on x
No real surprises in Apple's earnings report. On average, Wall Street analysts expected Apple to report quarterly revenue of $89.3B, so $89.5B is within that ballpark. Mac and iPad continue to struggle YoY.
@htsfhickey Fred Hickey on x
Apple first look. Revs. down Y/Y(again) 4th straight qtr. Y/Y drops in all geographies (China, Europe, Japan) except N. Amer. iPhone revs. miss slightly. Macs miss huge by $900M (explains rushed “scary” announcement). Of course, bottom line beat(lower tax rate 14.8% vs 16% guide)
@munster_gene Gene Munster on x
4. Services beat estimates by 4%, growing at 16% yy, compared to 8% in June, 6% in March, 6% in Dec-22. The last time Services grew at this rate was in Dec-21 at 24%. The idea App Store will slow Services is not playing out.
@rsgnl Joe Rossignol on x
Mac revenue down 34% YoY is particularly bad though. No new models during the quarter.
@cnbcnow @cnbcnow on x
EARNINGS: Apple Q4 EPS $1.46 vs. $1.39 Est.; Q4 Revs. $89.50B vs. $89.28B Est. • $AAPL https://www.cnbc.com/... [image]
r/apple r on reddit
Apple beats estimates thanks to iPhone and services, but records fourth consecutive quarterly sales decline
r/StockMarket r on reddit
Apple earnings are out — here are the numbers
@stroughtonsmith … Steve Troughton-Smith on mastodon
Translation of the Vision Pro remarks on Apple's earnings call: this product is simply not going to be offered in countries that do not have an Apple Retail Store. — It me. This first generation product may just never launch here in Ireland 🫤 — https://www.macrumors.com/...
@lexnfx Alexei Oreskovic on x
Tim Cook on Apple's generative AI efforts: “In terms of Generative AI obviously we have work going on. i'm not going to get into details about what it is, because as you know we really don't do that. We are investing. investing quite a bit. We are going to do it responsibly.”
@neilcybart Neil Cybart on x
Apple guidance for 1Q24: Gross margin: 45% to 46%. That's a really strong guide.
@htsfhickey Fred Hickey on x
Apple Conf. call update. Guidance weak. Cook sounds dejected. “too early to tell” on iphone 15 upgrades.
@tech_reve @tech_reve on x
Apple has projected that its fourth-quarter revenue will be at a similar level to the previous year. However, it's worth noting that last year's fourth quarter was a period when Apple faced supply disruptions due to the COVID-19 lockdowns in China, resulting in lower performance…
@munster_gene Gene Munster on x
Another factor impacting guidance is tough comps in iPad and wearables.
@munster_gene Gene Munster on x
Bottom line is there is noise in the guidance given the weeks in the quarter and the tough comps. I believe these normalize in the March quarter, and expect overall revenue to be up around 5%, inline with the Street.
@tech_reve @tech_reve on x
Thoughts on Apple's Earnings... It seems like Huawei poses a significant threat to Apple. Cook emphasized the strong sales of the iPhone 15 in China, but I believe that the days of Apple dominating the premium market in China as it did before are increasingly challenging to envi…
@neilcybart Neil Cybart on x
One observation from this Apple earnings call (so far): Both Cook and Luca sound a bit more upbeat on this call versus the past few earnings calls.
@munster_gene Gene Munster on x
$AAPL stock slipped 3% in after-hours. They guided Dec revenue down by 5% and expect it to be flat yy. They mentioned the 13 weeks in this Dec quarter compared to 14 weeks a year ago. Luca suggested if they had 14 weeks in this December, they would have guided up by 2%.
@munster_gene Gene Munster on x
I believe most (80%) of analysts models reflected 13 weeks. Some were likely asleep at the wheel. Either way you cut it, it was a soft guide.
@neilcybart Neil Cybart on x
Apple guidance for 1Q24: We expect December quarter revenue to be similar to last year. There's various moving parts in that but all in all not an awful revenue guide.
@munster_gene Gene Munster on x
Luca says 2B active devices growing at a “nice” pace. That's the flywheel that allows $AAPL investors to sleep well at night.
@neilcybart Neil Cybart on x
Analyst question about smartphone market in China. Tim Cook: We set an iPhone revenue record in China last quarter. We are proud of that. The market predictions that I see have the market contracting, so that means we gained share last quarter. I don't know what every quarter...
@munster_gene Gene Munster on x
Cook says things he “could not be happier” about how things are going in India. My take; it's a big opportunity, likely 3% of sales compared to China at around 20%. That said, it will take time because GDP per customer in India is 1/5 of China, but that gap is closing.
@neilcybart Neil Cybart on x
iPhone revenue was up double digits in emerging markets.
@munster_gene Gene Munster on x
iPhone in China. Cooks says the gained share in September quarter. That makes sense given overall phones in China were down more than 3% yy.
@jakekaldenbaugh Jake Kaldenbaugh on threads
Apple services powering the company now, overperforming by $1B. AppleOne subscriptions!
@romitmehta.com Romit Mehta on bluesky
Reminder: iCloud's free tier is still 5GB. — Yes, five. Yes, gigabytes. [embedded post]
@neilcybart Neil Cybart on x
Apple CFO Luca Maestri: We set revenue records in every one of our Services categories.

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