Apple defies tech sector gloom with earnings rise - Mobile World Live

Apple defies tech sector gloom with earnings rise

28 OCT 2022

Apple warned it faced headwinds in the next quarter and expects its revenue to suffer as a result, as it somewhat bucked the trend among the big technology companies by posting top-line increases in its fiscal Q4 earnings (the period to end-September 2022).

CFO Luca Maestri said on its earnings call that Apple’s overall annual revenue gains would decelerate in the period to end-December, flagging foreign exchange headwinds from a strong US dollar and supply chain challenges for its latest iPhone 14 line-up.

It expects an 8 per cent fall in revenue during the current period.

On the latest smartphone line, which was released in September, CEO Tim Cook said demand had been strong, but more “constrained” for the pricier Pro and Pro Max models.

Net income rise
On to the numbers, Apple’s revenue hit a “record” $90.1 billion, up 8 per cent year-on-year, with its services division 5 per cent higher at $19.2 billion.

Revenue from products, which includes its hardware line, increased from $65 billion to $71 billion, with iPhone up 10 per cent to $42.6 billion.

Net income rose slightly to $20.7 billion from $20.5 billion, notably fairing better than other technology giants including Alphabet and Meta Platforms, which suffered 27 per cent and 52 per cent declines respectively during the quarter.

“We did better than anticipated, in spite of the fact that foreign exchange was a significant negative for us,” added Maestri.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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