Apple shared its quarterly earnings results yesterday, and while iPhone and Services are soaring, not all of its products were faring so well.
Sharing the second quarter results of its fiscal year 2023 that ended on April 1st, Apple revealed a quarterly revenue of $94.8 billion, down 3% year over year.
Despite being down year over year, CEO Tim Cook revealed all-time records helped maintain the quarter. He said, "We are pleased to report an all-time record in services and a March quarter record for iPhone despite the challenging macroeconomic environment and to have our installed base of active devices reach an all-time high,"
“We continue to invest for the long term and lead with our values, including making major progress toward building carbon neutral products and supply chains by 2030.”
So it looks like services like Apple TV Plus and Apple Music continue to be a golden egg for Apple as more and more customers turn to subscription models. And there are many reasons to, you can check out our guide to the best Apple TV Plus shows for yourself.
In a follow-up interview with CNBC, he also confirmed that, unlike other tech giants like Meta and Alphabet, Apple isn't considering any cuts. Cook said, "I view that as a last resort and, so, mass layoffs are not something that we're talking about at this moment,"
Apple earnings Q2 2023: It's not all good news
While Services and iPhone revenue were soaring, it looks like it wasn't all roses, with the company being hit hard in Mac and iPad revenues. With the pandemic slump and the cost of living crisis hitting the globe, PC sales have been drastically impacted, with Apple getting the worst.
Cook thinks there are a couple of reasons for the loss in revenue, "One is the macro situation in general. And the other is where we're still comparing to the very difficult compare of the M1 MacBook Pro 14 and 16-inch from the year-ago quarter."
With potential new Macs on the horizon, like the 15-inch MacBook Air, there could be further interest in the Mac very soon. However, the company also revealed iPad revenue was down 13%. With a much-needed iPadOS 17 update likely to be announced at WWDC on June 5, it looks like Apple will need to do something exciting to make customers want to upgrade their iPads.
While the earnings call could be seen as a huge success or a minor failure, depending on who you ask, it's an excellent time to be an Apple fan as many exciting updates and hardware reveals, like Apple VR, could be just around the corner.
