But what about the future?
This week, all eyes were on Apple, which capped a string of disappointing results from Google, Meta, and Amazon. Apple, on the other hand, managed to defy the trend with another record-breaking quarter. In its fiscal fourth quarter, the company reported revenue of $90.1 billion, an increase of 8% year on year, and quarterly earnings per diluted share of $1.29, an increase of 4% year on year.
The iPhone and Mac were the quarter’s two most important product categories. Because of the earlier release, Apple enjoyed an extra week of iPhone 14 sales (though this did not include the new iPhone 14 Plus, which arrived on October 7). Sales of the iPhone were just under $43 billion, a 10% increase over last year, and Mac sales rebounded from a disappointing $7.2 billion in the previous quarter to $11.5 billion.
CEO Tim Cook stated during the earnings call that the iPhone set a quarterly record for upgraders and double-digit switchers. He also mentioned that Mac sales set an all-time high in terms of revenue.
Wearables, which included early sales of the Apple Watch Series 8, also had a strong month, with $9.7 billion in sales, up about 10% from last year.
Here’s how Apple’s fiscal quarter ended:
- iPhone: $42.6 billion
- iPad: $7.2 billion
- Mac: $11.5 billion
- Wearables: $9.7 billion
- Services: $19.2 billion
While Services increased over last year, the category fell from $19.7 billion in the previous quarter. iPad sales were also down, falling 13% year on year.
Apple declined to provide fourth-quarter guidance, but CFO Luca Maestri warned of a “deceleration” in growth. However, there are reasons to be optimistic. Two new iPad models and an Apple TV 4K were released last week, and Macs are expected to be released next month. During the call, Cook stated that silicon-related supply constraints, which had previously impacted revenue, were “not significant in the September quarter.”