Q3 2022 results: Apple bends but does not break

The shadow of the crisis, or rather we should say of the crises, weighs on Apple even if the manufacturer manages to hold its own against the competition. This was the case in the spring, as the company has just announced on the occasion of the financial results of its third fiscal quarter.

Quite often, the spring (ie the third fiscal quarter for Apple) is the weakest of the year for the manufacturer. This is no exception to the rule, even if the Apple is obviously not to be pitied with a turnover of 83 billion dollars, up 2% compared to last year… but profits at height of 19.4 billion (-10%)

But the period was also marked by re-containments and new restrictions in China, not to mention the consequences of the war in Ukraine, soaring inflation, the dollar once again very strong against other currencies, and wait a minute. also adds supply difficulties! A hell of a very bitter cocktail that Apple drank without choking too much.

On a commercial level, the months of April, May and June were animated by the launch at the very end of the quarter of the MacBook Pro M2, the 2022 edition of the Apple Watch bracelets of pride and… the end of the marketing of the iPod touch 😢. Not much to eat then, but it should be noted that these three months marked the first full quarter of availability for the Mac Studio, the Studio Display and the iPhone SE3.

In short

In billions of dollars.

Q3 2022 Q3 2021 Evolution
Turnover 82,959 81,434 +1.87%
profit 19,442 21,744 -10.59%
iPhone 40,665 39,570 + 2.77%
iPad 7,224 7,368 -1.95%
mac 7,382 8,235 -10.36%
Services 19,604 17,486 +12.11%
Others products 8,084 8.775 -7.87%

Turnover

In terms of sales of products and services, this third quarter marks a record, Apple had never garnered a turnover of 83 billion dollars during a spring. If sales increased by about 2% compared to last year, profits fell sharply by more than 10%, to 19.4 billion.

Analysts were betting on revenue of $82 billion, with earnings of $1.16 per share (a metric closely watched by investors). With $1.20 per title, Apple does a little better!

Apple had announced a shortfall of between 4 and 8 billion dollars due to the economic situation. In fact, this shortfall is less than 4 billion. The Chinese market shows a drop of 1% to 14.6 billion, obviously the manufacturer was expecting a stronger decline.

iPhone sales

Despite its now distant launch, the iPhone 13 range continued to be a hit, with sales remaining at a good level: $40.6 billion, or 2.7% more compared to last year. . It’s a very small increase, but given the context it’s not so bad.

Tim Cook clarified that Apple had recruited quite a few Android switchers this quarter, ” a record number ! The manufacturer is recording double-digit growth for new users who have just acquired an iPhone.

iPad sales

Tablet sales continue to slide, after two previous quarters on a downward slope. Apple sold $7.2 billion, down 2% from last year.

Mac sales

Despite the attraction of the M1 (and now M2) chip, the Mac family had more difficulty convincing during the quarter compared to the previous ones. Sales amounted to 7.3 billion dollars, down 10%.

Sales of Mac, like those of iPad in decline, are the result of supply difficulties, assured Tim Cook. Because the demand is there and there, and it shows in the delivery times for some Macs! Apple also argues the impact of the strong dollar.

Services and other products

The services box, increasingly important for Apple, continues to pick up the ante with 19.6 billion dollars (+ 12%). Subscriptions of all kinds to the manufacturer’s various services (Apple Music, iCloud storage, Apple Fitness+ and so on) as well as those sold by applications allow this activity to strengthen its place as the second most important activity for the constructor.

Apple now has 816 million subscribers (including those who subscribe in apps).

The catch-all category of other products, in which come the Apple Watch, AirPods, Apple TV and even Beats products, twisted by almost 8% during the quarter with a turnover of 8 billion. of dollars. It’s a bad surprise, you have to go back to the first quarter of 2017 to find a drop in sales.

The global economy is having an impact on sales of smartwatches and earphones, according to Apple (but maybe it would take a few new things to revive interest too…). The situation also affects certain services, such as advertising.

For more

No forecasts again for the next quarter, on the other hand Tim Cook explained to expect a ” acceleration during the September quarter, despite some pockets of resistance “. Nevertheless, Apple does not perceive any deterioration in the health situation or the macroeconomic context. The growth of services will decelerate, for macroeconomic reasons and the effect of exchange rates.

Inflation has had an impact on the cost structure of the company, he added. A price increase that weighs on logistics costs, wages, and “ certain electronic components “. The Apple boss clarifies that Apple will continue to hire, ” but we do it deliberately “. A rumor announced a few days ago that the company was going to cut back a little on recruitment.

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