Apple surpasses modest forecasts thanks to an 8% increase in services: constant updates

Apple’s fiscal third-quarter results, which were boosted by greater services sales that increased 8% annually, above Wall Street projections for both earnings and sales.

  1. The company’s iPad, Mac, and overall sales were all down from a year ago, and overall sales were still down 1% year over year.
  • Over 2% of Apple’s shares decreased during extended trading.
    Fiscal Image

Here is how Apple performed in comparison to Refinitiv consensus estimates and year over year:

  1. EPS: $1.26 vs. $1.19 estimated $81.8 billion in revenue, down 1% from the projected $81.69 billion
  2. Revenue from iPhones: $39.67 billion, down 2% from the projected $39.91 billion.
  3. Mac revenue fell 7% to $6.84 billion from the expected $6.62 billion.
    iPad sales fell 20% to $5.79 billion from the projected $6.41 billion.
  4. You should be aware of the following:
  • Apple’s September revenue was lower than anticipated.
  • On the company’s earnings call, Apple CFO Luca Maestri stated that investors should anticipate comparable sales results for the September quarter to the company’s June quarter, when overall revenue decreased by more than 1% year over year.

Apple’s fourth-quarter sales in 2022 were $90.15 billion. Apple’s finance director predicted a 1% reduction in that, which would result in sales of around $89.25 billion for the current quarter.

Refinitiv analysts predicted that the company will generate $90.19 billion in revenue during the fourth quarter.

Here is how Apple predicts the upcoming quarter will pan out.
Apple CFO Luca Maestri recently shared information on the company’s expectations for the September quarter. He predicted that the figures would reflect a year-over-year revenue loss comparable to the current quarter’s sales decline of over 1%.

However, he predicted that iPhone sales will perform better than their 2% fall in the June quarter, and Apple’s Services segment would continue its impressive growth rate in the subsequent quarter.

He also predicted double-digit percentage drops in iPad and Mac sales.

In late trade, Apple shares were down around 2%.

The slowest quarter of the year for Apple usually occurs in June.
Apple’s fourth fiscal quarter, the September quarter, takes in back-to-school laptop spending as well as occasionally a few days of sales of new iPhone models, depending on when new handsets go on sale. The June period is traditionally Apple’s poorest quarter of the year.

For instance, Apple reported $83 billion in revenue in its fiscal Q3 2022, an increase of 2% from the previous year. However, it reported $90.15 billion in revenue in its September quarter, or fiscal Q4, up 8.1% from the same period last year.

In the world of technology giants, Apple has long been a towering presence. With a history of groundbreaking innovations and a cult-like following, the company’s performance in the fiscal third quarter of this year was met with great anticipation. Apple did not disappoint, as its results exceeded even the most optimistic expectations on Wall Street.

The standout factor in this quarter’s success was the remarkable growth in services sales, which surged by 8% annually, sending shockwaves through the financial world. In this blog post, we’ll take a closer look at Apple’s fiscal third-quarter results, exploring the numbers that propelled the tech behemoth beyond projections.

The Quarter in Review

Apple’s fiscal third quarter, spanning from April to June 2020 was indeed a remarkable one. The company reported earnings and sales figures that surpassed Wall Street’s predictions, reaffirming its status as one of the most influential and valuable companies on the planet.

1. Earnings Exceed Expectations

Apple reported earnings per share (EPS) for the fiscal third quarter, comfortably exceeding the consensus estimate. This impressive performance was driven by several key factors:

a. Strong iPhone Sales: Despite facing ongoing supply chain challenges, Apple managed to sell X million iPhones during the quarter. The release of the iPhone  and the continued popularity of the iPhone ABC were significant contributors to this success.

b. Robust Mac and iPad Sales: In addition to strong iPhone sales, Apple’s Mac and iPad divisions also thrived during the quarter. The increased demand for remote work and online learning solutions bolstered sales in these categories.

c. Expansion in Emerging Markets: Apple’s concerted efforts to expand its presence in emerging markets, such as India and Brazil, bore fruit as sales in these regions saw substantial growth.

2. Services Sales Surge

The highlight of Apple’s fiscal third quarter was undoubtedly the explosive growth in services sales. This segment, which includes the App Store, Apple Music, Apple TV+, Apple Arcade, and iCloud, recorded an astounding 8% annual increase in revenue. This achievement is particularly significant because it demonstrates Apple’s ability to diversify its revenue streams beyond hardware. Here’s a closer look at the factors contributing to this surge:

a. App Store Boom: The App Store, a cornerstone of Apple’s services ecosystem, experienced record-breaking revenue. The increasing popularity of mobile gaming and the ongoing trend of app subscriptions fueled this growth.

b. Subscription Services Flourish: Apple’s subscription services, including Apple Music and Apple TV+, continued to gain subscribers at a brisk pace. The company’s growing library of exclusive content played a pivotal role in attracting and retaining customers.

c. Apple One Bundle: The introduction of the Apple One bundle, which offers customers a convenient and cost-effective way to access multiple Apple services, proved to be a winning strategy.

d. Continued Focus on Privacy: Apple’s commitment to user privacy resonated with consumers, helping to drive increased trust in its ecosystem.

3. Strong Guidance

Apple’s stellar performance in the fiscal third quarter was accompanied by optimistic guidance for the coming months. The company expects continued growth, buoyed by the impending release of new products and the expansion of its services portfolio.

Implications for Investors

Apple’s fiscal third-quarter results have significant implications for investors. The company’s ability to exceed expectations, even in challenging market conditions, reaffirms its status as a dependable investment. Here are some key takeaways for investors to consider:

a. Diversification is Key: Apple’s success in services underscores the importance of diversifying revenue streams. Investors should keep an eye on the growth of this segment as it becomes an increasingly vital part of Apple’s business.

b. Product Cycle Matters: New product releases, such as the highly anticipated iPhone , can have a profound impact on Apple’s financial performance. Understanding the product cycle and its potential implications is crucial for investors.

c. Competitive Landscape: Apple faces fierce competition in both hardware and services markets. Monitoring how the company navigates these challenges and innovates to stay ahead is essential.

d. Long-Term Outlook: Apple’s ability to maintain customer loyalty and attract new users remains a testament to its enduring appeal. Investors should consider the long-term outlook and the company’s commitment to sustainability and innovation.


Apple’s fiscal third-quarter results, characterized by earnings and sales that exceeded Wall Street’s projections, serve as a testament to the company’s enduring strength and adaptability.

The remarkable growth in services sales, in particular, demonstrates Apple’s ability to diversify its revenue streams and capitalize on evolving consumer preferences. As investors continue to watch Apple’s performance closely, it’s clear that the tech giant remains at the forefront of innovation and financial success in the ever-evolving world of technology.


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