Apple Q1 2023 Results: $30.0B Profit, But Still a Miss

BY Sriansh

Published 3 Feb 2023

tim cook defends app store monopoly

Apple has announced its financial results for Q1 2023 (Q4 2022 calendar quarter). The Cupertino giant generated $117.2 billion in revenue and a net quarterly profit of $30.0 billion. This is a slight decrease compared to the same quarter of last year, where they posted revenue of $123.9 billion and a net quarterly profit of $34.6 billion.

Apple CEO Cook began the Q1 2023 results with a review of the company’s performance, saying that it set “records in a number of geographic segments”. He noted that revenue was down 5% year over year, but remained “incredibly confident” in his team and the work they do. Cook attributed this decline to three factors: foreign exchange (FX) factors, supply constraints for the iPhone 14 Pro and Pro Max due to COVID-related issues in China, and a challenging macroeconomic environment, including inflation, war in Eastern Europe, and the pandemic.

Regarding product categories, the iPhone was down 8% year over year. The Mac revenue dropped to $7.74 billion, compared to the previous revenue of $10.85 billion in the same quarter last year. While the iPad, revenue grew 30%, Wearables, Home, and Accessories category was down 8% year over year. Here’s a chart depicting the contribution of each category for this quarter’s revenue:

apple q1 2023 results

Over 2 Billion Active Apple Devices Worldwide

The company also announced that it has more than two billion active iPhones, iPads, Macs, and other devices worldwide. The CEO of Apple, Tim Cook, during the earnings call said that it is a “major milestone” for the company. However, the company did not provide specific numbers for individual devices.

CFO Luca Maestri then delved deeper into the financial results, stating that revenue was down 5% year over year mainly due to supply shortages for the iPhone 14 Pro and Pro Max. Even though product revenue was down by 8%, the installed base of active devices grew double digits and set all-time records in each category, Maestri said. He also spoke about the extremely strong levels of customer satisfaction and loyalty and a high number of new users, as well as the all-time revenue record set by Services, up 6% year over year.

On the whole, Apple CEO Tim Cook remains “more confident about the future of Apple,” despite the challenges posed.

Source: Apple