Apple has reported strong financial results for its fiscal 2023 second quarter ended April 1, 2023. The company announced quarterly revenue of $94.8 billion, which is down 3 percent from the previous year, and earnings per diluted share of $1.52, unchanged from the same period last year.
Despite the challenging macroeconomic environment, Apple's services revenue reached an all-time high, and iPhone revenue set a March quarter record. Specifically, Apple's iPhone sales in USD for the months of January, February, and March reached their highest ever in a single quarter. The company's installed base of active devices also reached an all-time high.
"We continue to invest for the long term and lead with our values, including making major progress toward building carbon-neutral products and supply chains by 2030," said Tim Cook, Apple's CEO.
Apple's Chief Financial Officer, Luca Maestri, added that the company generated strong operating cash flow of $28.6 billion and returned over $23 billion to shareholders during the quarter. Apple's board of directors has authorized an additional $90 billion for share repurchases and has also increased the quarterly dividend by 4 percent.
Apple's Q2 2023 financial results conference call was streamed live on May 4, 2023, and is available for replay for approximately two weeks thereafter.
The strong financial results are a testament to Apple's continued success in the tech industry, with the company's services revenue and iPhone sales leading the way. Apple's commitment to sustainability and its values also set the company apart from its competitors.
Quarter Highlights Based on the Earnings Call
The highlight of Apple's Q2 2023 report was iPhone sales, which grew from the year-ago quarter even as the broader smartphone industry contracted nearly 15% during the same time.
Apple's individual product lines: iPhone revenue increased 2% and beat expectations, Mac and iPad revenue fell more than expected due to parts shortages and a difficult comparison from the year-ago quarter, and Services revenue increased 5.5% year-over-year.
Apple's Q2 2023 financial results exceeded Wall Street's expectations for EPS, revenue, and gross margin, but net income and total revenue were both down compared to the prior quarter.
Apple's finance chief Luca Maestri expects overall revenue in the current quarter to decline about 3% due to macroeconomic challenges in digital advertising and mobile gaming.
Apple's wearables division, including Apple Watch and AirPods, dropped 1% during the quarter but beat analyst expectations.
Apple's China business (including Taiwan & Hong Kong) reported a decline in sales compared to the previous year, while sales grew in the Asia Pacific region. It was an all time record quarter for services in China however.
Apple's board authorized $90 billion in share repurchases and dividends and raised its dividend 4% to 24 cents per share.
Apple CEO Tim Cook was optimistic about the company's prospects in India after his visit to the country last month, where he opened Apple stores and met with politicians.
Cook said that Apple was not planning layoffs like those of other big tech companies over the past year.
