Apple still generates substantial profits, but..

Apple services still make a lot of money, but... The American giant doesn’t have much to fear.

Apple’s finances continue to decline somewhat. As was the case in the previous two quarters, the company suffered relatively minor revenue losses in its third fiscal quarter of 2023. Minor losses for a company that still makes a lot of money every quarter.

Apple still generates substantial profits, but..

As has often been the case, Cupertino’s revenue from its Services segment (along with iCloud, Apple Music, AppleCare, the App Store and many others) reached a new record $21.2 billion. This is the second best performing product category behind the iPhone and the iPhone has gained 8% over last year. But revenues for iPhone, Mac and iPad have decreased compared to the previous year, as was the case in the previous quarter.

In the case of the iPhone, the loss is very slight: revenues of $39.7 billion for the quarter are 2% lower than those of a year ago. Sales of iPad (-19.8%) and Mac (-7.3%) recorded more significant losses, But since the apple brand has not updated its iPad range since last fall, this is not very surprising. Wearables (such as Apple Watch and AirPods) and other accessories are on the rise, with revenues up 2%, the only category of products besides services, to grow.

The American giant has little to fear

In total, revenues of $81.8 billion were less than 2% lower than the previous year, while profits actually increased by about 2% to $19.9 billion.

In addition to the conventional product categories, these financial results will be the first since the very ambitious and expensive Vision Pro headset was announced. No doubt investors will want to know more. And there are also projects around artificial intelligence.