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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