Apple's fiscal second quarter revenue fell as expected, but the drop was less than feared. The results highlight how Apple has been able to weather a weakening economy.
The company reported second-quarter revenue of $94.8 billion, down 3% from a year ago. Apple reported second quarter earnings of $1.52 a share.
Wall Street was expecting second quarter earnings of $1.43 a share on revenue of $92.96 billion. For the June quarter, Apple is expected to deliver earnings of $1.21 a share and revenue of $84.5 billion.
Here's a look at the key takeaways:
Apple is a cash cow.
Apple is a cash machine and its dividend and stock buyback reinforce the company's image as a safe haven for investors in what CEO Tim Cook called a "challenging macroeconomic environment." Apple generated operating cash flow of $26.8 billion in the March quarter and authorized $90 billion to repurchase common stock.
Apple is a cash cow because it's increasingly a services company.
For the three months ended April 1, Apple services revenue was $20.9 billion, up from $19.8 billion. Apple's installed base enables the company to sell you more services.
Hardware has taken a hit.
Product revenue for Apple checked in at $73.93 billion, down from $77.46 billion. Apple's revenue decline isn't completely unexpected given that IDC said first quarter global smartphone shipments fell 14.6% from a year ago. However, Apple's first quarter shipments were down 2.3% from a year ago, according to IDC. That tally was better than Samsung's first quarter decline of 18.9%.
PC sales fell 29% in the first quarter compared to a year ago, said IDC. Apple's shipments fell 40.5% in the first quarter compared to a year ago. That decline was worse than other global vendors such as Lenovo, HP and Dell, which saw declines between 24% to 31%.
But it's still all about the iPhone.
Apple's iPhone sales were $51.33 billion in the second quarter, up from $50.6 billion a year ago.
Mac sales tanked and iPad didn't do much better.
Apple's second quarter Mac revenue was $7.17 billion, down from $10.43 billion a year ago. Like most PC vendors, Apple has a hangover from pandemic era laptop purchases.
Ditto for the iPad, which saw sales of $6.67 billion, down from $7.65 billion a year ago.
Apple Watch keeps wearables and accessories steady.
Apple's wearables business held the revenue line with second quarter sales of $8.76 billion, down from $8.8 billion a year ago.
Apple sales steady in Europe.
Apple's regional results are worth noting. Americas second quarter revenue was $37.78 billion, down from $40.9 billion a year ago. Europe had a slight gain with sales of $23.94 billion. China sales in the second quarter were $17.8 billion, down from $18.34 billion.
Japan second quarter revenue was $7.2 billion, down from $7.72 billion a year ago. Rest of Asia Pacific sales were $8.12 billion, up from $7.04 billion a year ago.
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