APPLE RESULTS 2Q

Apple posts 2Q results, revenue beats expectations, net profit down year-over-year

US technology company Apple released results for the second quarter of fiscal year 2023. Revenue was driven by growth in iPhone product sales.

2Q results

Second quarterrevenue declined 2.5% year-over-year to $94.84 billion.

Apple recordedproduct revenue of USD 73.93 billion. This is a year-on-year decline of 4.6%. Analysts had forecast USD 71.91 billion.

Revenue from customer services rose 5.5% year-on-year to USD 20.91 billion against expectations of USD 21.11 billion.

Gross margin was down 1.4% year-on-year to USD 41.98 billion. USD 40.98 billion was forecast.

Revenue by product

The iPhone was the largest contributor to revenue. Revenues from this product increased 1.5% year-on-year to USD 51.33 billion.

Mac revenue decreased 31% year-on-year to USD 7.17 billion. Analysts had forecast USD 7.74 billion.

iPad revenue was also down 13% year-on-year to USD 6.67 billion. USD 6.69 billion was expected.

Other accessory products beat expectations. Revenues for these products were USD 8.76 billion against expectations of USD 8.51 billion.

Revenue by region

North and South America contributed the most to revenue. The company recorded revenues of USD 37.78 billion in this region. In 2Q 2022, revenue reached USD 40.88 billion.

In Europe, revenue increased year-on-year, from USD 23.287bn to USD 23.945bn.

Revenue in Greater China decreased 2.9% y-o-y to USD 17.81bn. USD 17.16 billion was forecast.

In Japan, the company generated revenue of USD 7.18 billion. In the second quarter of 2022, the company recorded revenue of USD 7.72 billion.

In the rest of the Asia Pacific region, revenue reached USD 8.12 billion.

Analyst comment from D.A. Davidson

"Apple's results exceeded expectations, despite a difficult macroeconomic environment that negatively impacted customer service revenue. We also continue to expect the company to pursue the same strategy in India that it had in China."

Apple shares

The stock is up 2.21% to $169.46 in pre-market trading.Apple shares are also trading on the RM-SYSTEM (BAAAAPL) at ₹3,604.50 per share.