Apple Inc. beat estimates in third quarter results
Apple released its financial results for the third
quarter of its fiscal year 2022, on Thursday. The company posted a
record revenue for the quarter of $83.0 billion, an increase of 2% over
the prior year.
According to Apple CEO Tim Cook, the company's record
quarterly earnings reflect the company's ongoing efforts to innovate, open up
new opportunities, and improve the quality of life of its users. In keeping
with its long-standing determination to make products for everyone, Apple
continues to lead with its principles and incorporates them into everything it
does, from additional features that are intended to safeguard user privacy and
security to tools that will improve accessibility.
Apple didn't offer any official guidance for the
period. Analysts anticipated the business to provide fourth-quarter forecast of
roughly $90 billion in sales and $1.31 in earnings per share.
In comparison to the same period a year ago and
the March quarter, when Apple's revenue increased by nearly 8% and 36%,
respectively, throughout the quarter. Cook stated that the performance exceeded
his expectations, and CFO Luca Maestri described the market as
"difficult."
“Our June quarter results continued to demonstrate our
ability to manage our business effectively despite the challenging operating
environment. We set a June quarter revenue record and our installed base of
active devices reached an all-time high in every geographic segment and product
category,” said Maestri. “During the quarter, we generated nearly $23 billion
in operating cash flow, returned over $28 billion to our shareholders, and
continued to invest in our long-term growth plans.”
As consumers continue to deal with economic
concerns and inflationary pressures, chipmakers and other computer suppliers
have warned that demand for smart devices and gadgets is dropping
globally. The consumer electronics sector, which includes giants like Apple,
may be heading for a period of weak or no growth, according to Apple.
The board of directors of Apple has announced a cash
dividend per share of the company's common stock in the amount of $0.23.
Shareholders with records as of the close of business on August 8, 2022 will
receive the dividend on August 11, 2022.
The fact that Apple's iPhone sales beat Wall Street
forecasts suggests that demand for the iPhone 13 models is still considerable
even halfway through the product's yearly release schedule. Sales decline as
customers await new models, which happens every September when Apple launches
new iPhones.
Cook claimed that throughout the quarter, Apple was
successful in converting Android users to iPhone owners.
Apple's Services division experienced the fastest
growth in the quarter. It covers recurring payments, service charges,
warranties, Google search licensing fees, and income from the iPhone App Store.
According to Cook, Apple has 860 million active paid
subscriptions, including those for apps purchased through the Apple App Store
as well as services like Apple Music and iCloud.
Mac sales declined more than 10% year over year and
came up short of consensus forecasts. Cook attributed this to short supply and
a strong dollar.
Apple issued a $4 billion to $8 billion sales warning
in April, and the company's website displayed increased shipment delays for
various Mac models during the quarter. Cook claimed that the final revenue was
less than $4 billion.
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