On May 4, technology giant Apple announced its results for the second quarter ended April 1, 2023.。Apple's total second-quarter revenue during the reporting period was 948, according to earnings data.$3.6 billion, compared with 972 in the same period last year.$7.8 billion, down 2.5%; net profit of 241.$6 billion, compared to 250.$1 billion, down 3% YoY; diluted earnings per share of 1.$52, unchanged from the same period last year。

 

Analysts are "slapped in the face."？iPhone Business Far Exceeds Expectations to Record Quarterly High Asia-Pacific Contributions

 

It is reported that this is the second consecutive quarter of Apple recorded a year-on-year decline in revenue。During the earnings call at the time, Apple CEO Cook personally acknowledged that the earnings data was dragged down by product price factors and said he would revive sales through trade-in and installment payments.。

In fact, ahead of this earnings release, Apple had warned that sales of its iPad tablets and Macs would plummet。Analysts, on the other hand, are more aggressive in arguing that sales of products other than these are likely to fall 12% and 25% year-on-year, respectively..In addition to 4%, revenue from its "core product" iPhone will also fall 3% year-on-year..8% to 486.600 million dollars。

Apple products "cold" is not news。In December last year, the media broke the news that due to the performance improvement of the iPhone14 series did not meet market expectations, a number of analysts have significantly reduced their shipments, sales are expected to decrease in more than 10 million units, Apple even cancelled the production plan for this。In mid-April, according to global technology market analyst Canalys, global smartphone shipments fell for the fifth consecutive quarter in the first quarter of 2023, down 12% year-on-year.。Statistics show that Samsung also overtook Apple during this period, returning to the top spot with a 22% market share, but the market share gap between Apple and Samsung is narrowing, driven by solid demand for the iPhone 14 Pro series。

Surprisingly, according to the earnings report, the iPhone business recorded revenue of 513.$300 million, well ahead of market expectations, up 2% year-on-year, a record high for the same period, becoming a highlight of the earnings report。

It was also because of the strong push from the iPhone that Apple's revenue and diluted earnings per share in the fiscal second quarter beat Wall Street expectations, despite a year-over-year decline in revenue.。Analysts had expected Apple's second-quarter revenue of $92.6 billion and diluted earnings per share of 1.42 USD。

Some analysts say the global factory resumption has alleviated component shortages and supply chain disruptions for iPhone products, leaving iPhone sales unaffected by the supply side。

In addition, strong sales in the Asia-Pacific region added another fire to its revenue growth.。Data show that although Apple's sales in the Americas, Greater China, and Japan declined year-on-year during the reporting period, revenue in the rest of the Asia-Pacific region, including India, rose 15% from the same period last year..3%, reversing the decline in sales in one fell swoop。

 

According to market research firm Counterpoint Research, iPhone sales in India surged 50% year-on-year in the first quarter, accounting for 6% of the market share.。At present, the iPhone has a leading position in the overall high-end market and ultra-high-end market in India, with market shares of 36% and 62% respectively.。

In mid-April, Apple CEO Tim Cook visited Mumbai to build momentum for Apple's new stores and met with Indian Prime Minister Narendra Modi to reaffirm Apple's commitment to investing in India.。In the same month, Apple opened two new Apple stores in Mumbai and the capital New Delhi, India, which is the first time that Apple has set foot in offline since it officially opened online sales channels in India after 2020.。There is no doubt that the performance of the Indian region in Apple's second fiscal quarter is absolutely worthy of Cook's good intentions.。

As for the rest of the Asia-Pacific region, Apple CFO Luca Maestri pointed out that iPhone sales in countries such as India, Indonesia, Turkey and the United Arab Emirates have doubled year-on-year.。

 

The end of the dividend M1 is too strong! Mac computer revenue fell sharply Apple services revenue renewed to a record high.

 

In contrast, Apple's iPad tablet and Mac business fell significantly。Among them, iPad tablet sales revenue during the reporting period recorded 66.$700 million, down 13% year-over-year; Mac computer sales revenue recorded 71.$700 million, down 31% YoY。

 

Some analysts believe that the above two revenue reductions may be due to the disappearance of the demand surge dividend caused by telecommuting during the new crown epidemic and the slowdown in consumer spending.。The analysis further points out that many consumers have upgraded their purchases of new computers and mobile phones during the new crown epidemic, while others have cut back on spending due to concerns about high inflation or recession, leading to a sharp decline in electronics sales.。On April 10, according to data released by the international data company IDC, global shipments of personal computers (PCs) in the first quarter were 56.9 million units, down 29% year-on-year.。Among them, Apple's shipments fell 40% year-on-year over the same period..5%, leading the decline。

Cook explained that Mac computer sales have been dragged down by the macroeconomic situation。In addition, Apple released the MacBook Pro with the M1 self-developed chip in the same period last year, and this season's sales are naturally hard to match.。

In addition, the wearable device business, including headsets such as Apple Watch and AirPods, has also been unable to escape the impact of the environment, and revenue has declined.。Among them, the income of household products and accessories was 87..$600 million, though higher than expected at 85.$100 million, but down 0.7%。In the same period last year, this business had grown by more than 12% year-on-year.。

Notably, Apple's services revenue hit an all-time high of $20.9 billion during the reporting period, setting a new record for the fiscal first quarter, but its growth rate has slowed significantly。It is reported that the project includes iCloud, Apple Music, Apple TV +, Apple Arcade, Fitness + and other segments, has become Apple's current highest profit margin business line。According to an analysis by financial website Finbold, Apple's services revenue will take on $7.4 billion in 2022, which alone has surpassed the combined revenue of several Fortune 500 companies.。

 

Cook: Prudent and steady progress in the integration of Apple products and AI Apple has no plans for mass layoffs

After the performance, Apple management held a conference call, Apple CEO Cook and CFO Masteri attended the meeting and answered questions from analysts.。

During the conference call, Cook spoke about the strong performance of emerging markets, including India.。He said India is a very strong market for Apple and is one of the company's business priorities.。He also said that as the middle class in the Indian market continues to expand, the company's performance is expected to face an upward turning point.。

For other emerging markets, he noted that the company's fiscal second quarter saw record growth in several countries, with particularly bright results in Brazil, India and Malaysia.。Despite currency headwinds, the company has performed very well in emerging markets。

When talking about the current hot topic of artificial intelligence, he said that the development potential of this technology is very "interesting," and the Apple ecosystem has made great progress in integrating artificial intelligence and machine learning technology, has been embedded in various Apple products over the past few years, and will continue to prudently and steadily promote the combination of this technology and the company's products in the future.。

In response to a wave of layoffs by Silicon Valley giants, Cook said Apple has no plans for mass layoffs。He noted that Apple is already cutting costs and slowing hiring, trying to save money and seeing layoffs as a last resort。

Separately, in an earnings release, Masteri said Apple's operating results improved year-over-year from the previous fiscal quarter, generating $28.6 billion in operating cash flow, while also returning more than $23 billion to shareholders in the quarter。Masteri went on to disclose that Apple has approved an additional $90 billion for share buybacks and raised its quarterly dividend for the eleventh consecutive year, declaring a distribution of 0 per share of the company's common stock..$24 cash dividend, up 4%。Dividends will be paid on 18 May 2023 to shareholders of record as of 15 May 2023。

Some analysts believe that Apple is using large stock buybacks to show confidence in its own stock。In the decade between 2012 and the end of 2022, Apple spent more than $572 billion on share buybacks, the highest of any company.。

Apple shares edged down 0% as of last trading day's close of U.S. stocks.99% at 165.79 USD。

 

Eagle Statement: This article is for reference only and does not constitute personal investment and operational advice.。Special reminder, the article is original content, without permission may not be reproduced。