Apple narrowly surpasses revenue expectations in Q3 results despite ‘pockets of softness’

Apple managed to surpass revenue by a slim margin of $83 billion USD (about $106 billion CAD) compared to an estimated $82.81 billion USD (roughly $106 billion CAD) (up just two percent year-over), alongside profit of $19.4 billion (approximately $24.8 billion CAD), according to the tech giant’s Q3 earnings report.

In an interview with CNBC, Apple CEO Tim Cook said, “In terms of an outlook in the aggregate, we expect revenue to accelerate in the September quarter despite seeing some pockets of softness.”

Regarding specific divisions and products, Apple’s services revenue hit $19.60 billion USD (about $25.1 billion CAD) vs $19.70 billion USD (roughly $25.2 billion CAD) in the year prior, an increase of 12 percent year-over-year. Services includes iCloud, Apple TV+, Apple Arcade and more, and is widely regarded as the focal point of the tech giant’s future growth.

On the other hand, iPhone revenue experienced far less growth at $40.67 billion USD (about $52.1 billion CAD) vs $38.33 billion USD (roughly $49.1 billion CAD) in the year prior, an increase of 2 percent year over year.

The rest of Apple’s Q3 report is far less positive.

Mac revenue came to $7.38 billion USD (approximately $9.4 billion CAD) vs $8.70 billion USD (about $11.1 billion CAD), a decrease of 10 percent year over year, and iPad revenue hit $7.22 billion USD (about $9.2 billion CAD) vs $6.94 billion USD (roughly 8.89 billion CAD), down two percent year over year. This downturn makes sense given the M2-powered MacBook Air just released and the last notable iPad Pro refresh was back in 2021.

Apple’s ‘Other Products’ division, which includes the Apple Watch, decreased eight percent year-over-year to $8.08 billion USD (about 10.35 billion CAD) from $8.86 billion USD (roughly 11.3 billion CAD).

Apple’s upcoming fall quarter will likely be a notable improvement over Q3 with the iPhone 14 series, the Apple Watch Series 8, several new M2-powered Macs, and more looming on the horizon.

You can find Apple’s full financial report here.

Source: Apple, CNBC