Apple's Q4 results show growth in 'interesting times' - Computerworld

Apple remains the astir resilient FAANG business. While different large tech firms (like Alphabet and Microsoft and Facebook) study grim news, Apple managed to acceptable caller records, accrued Android-to-iPhone switching numbers, but inactive somewhat missed expectations.

The institution reported its Q4 net precocious Thursday.

Decent results successful a unspeakable week successful tech

Overall, Apple’s quarterly results were decent successful what was an different unspeakable tech week. Total income deed a caller grounds $90.1 billion, up 8% YoY for net of $1.29 per share.

Wall Street’s statement expectations had hovered astir 88.9 cardinal for $1.27 per share. (It is worthy noting that estimates from Morgan Stanley’s caller Apple analyst, Erik Woodring, came closest of all). Gross margins deed 42.3%.

However, comparative weakness successful immoderate segments talk to the challenges we each face. “We are inactive surviving done unprecedented times,” CEO Tim Cook said, citing economical challenges, warfare successful Ukraine, COVID-19, and climate-related crises. "The satellite continues to beryllium unpredictable."

On an yearly basis, gross reached a caller grounds $394.3 billion, up 8%.

Despite challenges, nett income accrued successful each portion but Japan — with caller records successful India. Apple besides accrued gross successful each segment, but iPad, though the complaint of maturation successful immoderate areas seems successful flux.

The beardown dollar isn’t bully everywhere

Looking forward, institution execs seemed arsenic assured arsenic anyone tin beryllium successful specified a febrile economical environment. “Revenue show volition decelerate during the December quarter,” they warned, citing overseas speech fluctuations arsenic 1 large barrier.

In a much unchangeable currency situation successful which overseas speech challenges had not reduced revenues by 600 ground points, Apple would person delivered amended than 14% YoY gross growth.

As it is, successful the upcoming quarter, absorption suggested 8% YoY growth. It whitethorn assistance that Apple’s December 4th volition beryllium 1 week longer than usual.

What happened to iPhone sales?

iPhone income came successful lighter than expected, but the flimsy softness was much than compensated for by beardown Mac sales. The institution nary longer breaks retired numbers, but reported iPhone income of $42.6 billion, up 9.7% but somewhat nether statement expectations for $43.4 cardinal successful sales. That’s still way ahead of the wider smartphone manufacture — Apple is generating stock successful comparison.

We person heard speculation that consumers who are purchasing iPhones are choosing to put successful the Pro devices, supra the modular range, which does hint that wide income numbers whitethorn person declined a little, successful enactment with the wider manufacture trend. (This is offset by a higher mean walk per user.)

“We had 3 of the apical 4 smartphones successful the US, successful the UK, the apical 3 successful municipality China, the apical six successful Australia, 4 retired of the apical 5 successful Germany and the apical 2 successful Japan," helium said. "Customer restitution for the iPhone remains very, precise beardown astatine 98%.

"We consciousness precise bully astir however we performed successful Q4 and the surely the commencement of this procreation [of iPhone] would suggest that we're going to beryllium constrained for a small portion connected the 14 Pro and 14 Pro Max, but we're moving precise hard to effort to remedy that,” said Cook.

Services income grows, gait slows

Services income reached $19.2 billion, up 5%. Analysts were disappointed, fixed the treble digit maturation we’ve seen successful the class truthful far. They had anticipated $20.1 billion.

The bully quality is that Apple present has much than 900 cardinal subscribers to its services, up 155 cardinal successful the past 12 months. Apple CFO Luca Maestri pointed retired that integer advertizing and gaming were weak.

Apple precocious increased prices across immoderate of its services. It claims this reflects higher levels of euphony royalty.

That decision, combined with what appears to beryllium slowing gait of maturation successful the segment, suggests the institution whitethorn soon request to grapple with the occupation of churn, arsenic consumers look aggregate challenges. Though Apple did explicate that successful the discourse of unchangeable overseas currency exchanges the conception would person delivered double-digit growth.

It's worthy noting that Apple is expected to widen its catalog of disposable sports amusement programming connected TV+, which whitethorn assistance some boost sign-ups and mitigate churn.

Mac income - the champion 4th Apple has ever seen

Mac income climbed an awesome 25%, reaching $11.5 billion. “It was the champion 4th [for the Mac] we’ve ever had successful the past of the company,” said Cook.

He said a backlog of Mac request the institution was incapable to fulfil successful Q3 due to the fact that of Covid-related mill unopen downs did assistance boost Apple’s Q4. But helium besides pointed to spot successful income from the instauration of the M2 MacBook Air.

iPad income decline

iPad gross was $7.2 billion. That’s down 13.1%. To explicate this, Cook tried to reason that portion caller iPads were introduced successful clip to interaction results successful the year-ago quarter, this was not the lawsuit this year, with iPads introduced successful October.

One affirmative constituent Apple absorption highlighted: the iPad installed basal is present astatine its highest —and that implicit fractional of those purchasing iPads during the 4th were caller to the product.

Apple Watch, AirPods and more

Wearables and accessories reached $9.6 billion, up 9.8%. Cook confirmed the caller Apple Watch Ultra has been popular, confessing that proviso of the instrumentality remains constrained.

Strong greenish shoots for aboriginal growth

Beyond the modular numbers, Apple threw successful immoderate highly important nuggets of information. It continues to make steadfast income to radical caller to its offerings. More than 50% of iPad income and “over two-thirds” of Apple Watch income went to consumers who had ne'er owned 1 of those products before.

It besides generated grounds income successful India and accrued revenues successful China. Sales besides doubled successful Thailand, Vietnam, Indonesia, and Mexico, proving the company’s absorption connected expanding its markets.

What 1 expert says

“Like different large tech companies, adjacent Apple is suffering from the antagonistic interaction of a worsening macro backdrop and ongoing proviso concatenation woes, though it has done a amended occupation of navigating done the challenging environment,” said Jesse Cohen, elder expert astatine Investing.com

What’s coming next?

From the equilibrium sheet, it’s wide that Apple continues to put successful the adjacent large thing(s). Research and improvement spending deed $6.7 cardinal successful the quarter, up from $5.7 cardinal a twelvemonth ago. Spending connected this has reached $26.2 billion, up from $21.9 billion. It’s hard not to ideate Apple’s moving connected thing — peculiarly arsenic the institution continues to marque astir “one acquisition per month," according to Cook.

“As we caput into the vacation play with our astir almighty lineup ever, we are starring with our values successful each enactment we instrumentality and each determination we make," Cook said. "We are profoundly committed to protecting the environment, to securing idiosyncratic privacy, to strengthening accessibility, and to creating products and services that tin unlock humanity’s afloat originative potential.”

Investors get…

Apple’s committee of directors has declared a currency dividend of 23 cents per stock of the Company’s communal stock. 

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Jonny is simply a freelance writer who has been penning (mainly astir Apple and technology) since 1999.