[Asia Economy Reporter Jeong Hyunjin] On the 27th (local time), Apple announced sales results that exceeded market expectations, but its flagship product, the iPhone, showed disappointing performance. The market is paying attention to the impact that the iPhone 14, released by Apple last September, will have on future earnings.
According to Bloomberg and other sources, Apple announced its Q4 fiscal year 2022 (June 26?September 24) results on the same day, reporting total sales of $90.15 billion (approximately 128.3 trillion KRW), an 8.1% increase compared to the same period last year. This figure surpassed the market estimate of $88.9 billion.
The market’s focus is on iPhone sales. During this period, Apple’s iPhone sales recorded $42.63 billion, a 9.67% increase compared to the same period last year. Although sales increased, the revenue amount fell short of Wall Street’s expected figure of $43.21 billion.
Contrary to market evaluations, Luca Maestri, Apple’s Chief Financial Officer (CFO), explained that iPhone sales reached an all-time high this quarter, increasing 10% year-over-year and exceeding the company’s projections.
This iPhone sales figure includes eight days of sales following the iPhone 14 launch on September 16. Apple released the iPhone 14 about a week earlier than its predecessor. CNBC reported, “The market is looking into whether Apple’s customers are purchasing higher-priced models and whether the new devices can sustain higher sales volumes through Apple’s fiscal year 2023.”
Looking at other segments besides the iPhone, Mac (PC and laptops) sales increased by 25.39% year-over-year to $11.51 billion, while iPad sales, a tablet PC, decreased by 13.06% compared to a year ago, totaling $7.17 billion. The services segment, which includes App Store sales and digital subscriptions that Apple has focused on growing in recent years, recorded sales of $19.2 billion, a 4.98% increase year-over-year but fell short of market expectations of $20.1 billion.
Apple CEO Tim Cook said in an interview with CNBC that if not for the strong dollar, the company would have recorded double-digit growth. He emphasized that although the smartphone market is currently facing difficulties due to recent demand slowdowns, Apple’s phone sales performance remains strong.
Apple has not provided earnings guidance since 2020 due to uncertainty. However, according to foreign media, Apple expects a decline in sales for the first quarter of fiscal year 2023 without providing specific figures.
After the earnings announcement released after market close, Apple’s stock price fell by up to 2% but has gradually reduced the decline. Bloomberg reported that Apple’s stock price has fallen 18% this year, performing relatively well compared to the S&P 500 (20%) and the Nasdaq index (31%).
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