Apple posts net sales decrease for third quarter in a row

Apple posted its third quarter in a row of its net sales going down as it released its financial results for its Q3 2023 on Thursday afternoon.

The tech giant, led by CEO Tim Cook, said its products and services brought in a total of $81.8 billion in net sales in the third quarter, falling 1.4% compared to the $82.96 billion in the same three-month period in 2022. Refinitiv analysts had projected $81.69 billion.

Apple’s first and second quarters, released in February and May, respectively, previously showed year-over-year declines in overall net sales. For the first quarter, it was a 5.5% decrease while the second’s was 2.5%.

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For the third-quarter, iPhones generated net sales of $39.67 billion, somewhat below Refinitiv estimates of $39.91 billion. On an annual basis, they fell 2.4%, according to Apple.

Cook noted in a statement that the tech giant “saw continued strength in emerging markets thanks to robust sales of iPhone.”

Two of its other product-related categories – iPad and Wearables, Home and Accessories – also did not surpass analyst expectations, with the former generating $5.79 billion in net sales and the latter doing $8.28 billion. Mac’s $6.84 billion in quarterly net sales, however, did.

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Apple “had an all-time revenue record” for its Services segment, according to Cook. It previously said that about the first and second quarters.

Net sales for the segment rose 8.2% from last year’s third quarter, hitting $21.21 billion. The tech giant’s CEO said that feat was “driven by over 1 billion paid subscriptions.”

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Refinitiv analysts had estimated the segment would generate $20.76 billion.

Diluted earnings per share for the third quarter, at $1.26, rose six cents from the same time frame last year. That, too, was above the $1.19 that analysts had anticipated.