The Numbers
First, the numbers. Apple reported $90.8 billion in revenue over the quarter, blazing past Wall Street, whose most optimistic expectations had pegged the company’s earnings at $89.1 billion. That number was an outlier from JP Morgan, which showed a relatively bullish take compared to the rest of the industry’s $84.4 billion average estimate.
That represents a 4.3% drop from last year’s $94.8 billion in revenue, but that’s still comfortably shy of the 5% that analysts were predicting. It may not sound like much, but 0.7% is significant when we’re talking about billions of dollars.
Here’s how the numbers break down for this quarter:
- iPhone: $45.96 billion (-10.5% growth)
- Mac: $7.45 billion (3.9% growth)
- iPad: $5.56 billion (-16.7% growth)
- Wearables: $7.91 billion (-9.6% growth)
- Services: $23.87 billion (14.2% growth)
Apple is still doing considerably better than it was four years ago when it was coasting along just under the $60 billion revenue mark. That shot up to $89.6 billion in Q2 2021, and while some of that was undoubtedly fueled by the pandemic, nearly $19 billion of that increase came from iPhone sales, suggesting there was a lot to be said for the popularity of the iPhone 12 with its new design and 5G capabilities.
Apple peaked at $97.3 billion in Q2 2022, seeing increases in every category except for the iPad, which, to be fair, had shot up by a staggering 78% the year before as many more folks found themselves working and studying from home.