Apple’s revenue grew by 5% and exceeded market expectations

In Apple’s calendar, the third fiscal quarter ended at the end of June; the company published a report on the results of the period only today. Total revenue grew by 5% to $85.78 billion, exceeding analysts’ expectations; iPad tablets added 24% in monetary terms, but the main product category, iPhone, decreased revenue by 1%, although the quarter’s results were better than market expectations.

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As CNBC explains, Apple still receives about 46% of its total revenue from the sale of smartphones, in monetary terms this amounts to $39.29 billion, which is 1% less than the result of the same period last year. Analysts surveyed by LSEG expected revenue in this area to be no more than $38.81 billion, and in this regard, Apple’s statistics pleased them. As noted by the company’s CEO Tim Cook, without taking into account currency fluctuations, Apple increased revenue from iPhone sales in the last quarter.

The company had to increase costs to prepare a set of Apple Intelligence functions related to artificial intelligence for the fall announcement. She does not undertake to make predictions about how this announcement will affect her business. Many of the specialists who were previously involved in other tasks were transferred to preparing solutions in the field of AI, as Tim Cook admitted. In terms of developing computing infrastructure for AI, the company is ready to take a hybrid approach. It involves a combination of your own server capacities with rented ones.

Apple expects to see comparable revenue growth in the current quarter, according to CFO Luca Maestri. Over the past three quarters, the company’s revenue in the services segment grew at an average rate of 14%, which allows Apple to hope to maintain this pace in the near future. Operating expenses in the current quarter are planned to be kept in the range from $14.2 to $14.4 billion. The profit margin should fit into the range from 45.5 to 46.5%. The company’s net profit in the last quarter increased year-on-year from $19.88 to $21.45 billion. The profit margin reached 46.3% compared to the expected value of 46.1%.

The iPad business showed revenue growth of 24% to $7.16 billion. Last quarter, the company introduced new models of tablet computers for the first time since 2022. About half of iPad buyers last quarter purchased an Apple tablet for the first time in their lives.

In the Mac segment, the company increased revenue year-on-year by 2% to $7 billion, but this result was slightly worse than expected. Wearable devices, accessories and consumer electronics brought the company 2% less revenue than a year earlier – no more than $8.10 billion, exceeding the forecasts of third-party analysts. Two-thirds of Apple Watch buyers in the past quarter purchased such a device of this brand for the first time. The services sector, which includes various types of subscriptions, brought the company 14% more revenue than a year earlier – $24.21 billion. This revenue category continues to be the most dynamically growing for Apple. At least 1 billion users are customers of Apple’s paid services. In general, the number of active devices of the company continues to increase in all regions of its presence. In February it reached 2.2 billion units, now it is not specified.

However, in China, Taiwan and Hong Kong, Apple’s revenue decreased by 6% to $14.72 billion compared to the second calendar quarter of last year. As noted by third-party analysts, the iPhone in the Chinese market has to face serious competitive pressure. Tim Cook expressed confidence in the long-term success of the company. Apple spent $32 billion on dividends and share repurchases last quarter.