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Apple Services Revenue Continues to Climb, Despite Three Consecutive Quarters of Shrinking Profits

Apple’s revenue experiences minor setbacks, yet continues massive earnings. Despite observing a slight downturn for the third consecutive quarter, Apple remains on a financial high. The tech giant’s revenue faced small dips during fiscal Q3 2023, but these minor downturns haven’t impeded the company’s impressive monetary gains each quarter.

The revenue from Apple’s Services sector, which encompasses offerings like iCloud subscriptions, Apple Music, AppleCare, App Store, and more, soared to a record $21.2 billion. This figure positions the segment as Apple’s second most lucrative after the iPhone, boasting an 8% annual growth. However, when juxtaposed with the previous year’s statistics, revenues from iPhone, Mac, and iPad all witnessed reductions, mirroring the trend from the last quarter.

The iPhone’s revenue, at $39.7 billion for the quarter, was a mere 2% lower than the prior year. The iPad and Mac sectors saw more pronounced drops of 19.8% and 7.3%, respectively. The absence of any new iPad hardware since the last autumn partially explains this decrease. Meanwhile, the Wearables category, which includes products like Apple Watch and AirPods, along with accessories, saw an over 2% revenue boost, marking it and Services as the only sectors to experience growth.

In total, the company’s revenues reached $81.8 billion, indicating a decline of just under 2% compared to the previous year. However, profits climbed approximately 2% to an impressive $19.9 billion.

CEO Tim Cook is scheduled for a call at 5PM ET, and the agenda promises more topics than usual. Alongside the standard product categories, this is the first financial report after the announcement of the high-end Vision Pro headset. As such, investors are keen to get updates on this new product’s trajectory. Speculations about upcoming AI-centric projects also loom in the backdrop. Updates from Cook’s call will be added to this report subsequently.

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