Apple saw its profits rise during its fiscal third quarter, driven by iPhone sales and Apple Services.
The company posted a June quarter revenue record of US$83 billion, up 2% year over year, and quarterly earnings per diluted share of US$1.20.
This beat Wall Street’s expectation of $82.81 billion and $1.16 per share, but still was lower than the EPS of $1.30 it posted in the fiscal third quarter of 2021.
READ: Apple to slow hiring and investment ahead of potential downturn - report
“This quarter’s record results speak to Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers,” said Tim Cook, Apple’s CEO. “As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone.”
“Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category,” said Luca Maestri, Apple’s CFO. “During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans.”
iPhone revenue came in at nearly US$40.7 billion, compared to $39.6 billion in 3Q 2021, and Services increased to $19.6 billion from 3Q 2021’s $17.5 billion.
The services segment was banking on the increasing popularity of the App Store. Apple has more than 825 million paid subscribers across its services portfolio, which includes the likes of Apple TV+, Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One. For example, Apple TV+ won worldwide rights to broadcast Major League Soccer for 10 years, starting from 2023.
After hours, Apple shares (NASDAQ:AAPL) were trading at US$162.39, up almost 3% after the closing bell’s share price of $157.35.
Contact the author at susie@proactiveinvestors.com