Apple reports record Third Quarter revenue of $83 billion, beating estimates

Tech giant Apple has reported $19.6 billion in services revenue, marking a 12% year-over-year increase, but narrowly falling short of Wall Street predictions of about $19.7 billion.

Apple announced its financial results for its fiscal 2022 third quarter, which ended on 25June (2022).

It posted a June quarter revenue record of $83 billion, up 2% year over year, and quarterly earnings per diluted share of $1.20.

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Apple’s third-quarter services revenue also falls short of last quarter’s record-breaking $19.8 billion, and is also down from the 27% growth it reported during the same period last year.

Apple had not provided any guidance for the Third Quarter (Q3) 2022, citing ongoing supply chain issues and continued disruptions caused by the Covid-19 pandemic.

In fact, the company had even warned that supply constraints would cost it somewhere in the range of $4 billion to $8 billion in revenue for the quarter.

Tim Cook, Apple’s CEO, says this quarter’s record results speak to Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of its customers.

“As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone.”

CFO Luca Maestri added the June quarter results continued to demonstrate the company’s ability to manage its business effectively despite the challenging operating environment.

“We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category. During the quarter, we generated nearly $23 billion in operating cash flow, returned over $28 billion to our shareholders, and continued to invest in our long-term growth plans.”

Apple’s iPhone sales exceeded Wall Street expectations, suggesting that demand for iPhone 13 models remains strong even in the second half of the product’s annual release cycle.

Apple typically releases new iPhones in Septembe.

A category-by-category breakdown of Apple’s Q3 2022 revenue is outlined below.

• iPhone: $40.6B, up from $39.5B in year-ago quarter

• iPad: $7.2B, down from $7.3B in year-ago quarter

• Mac: $7.3B, down from $8.2B in year-ago quarter

• Wearables, Home, and Accessories: $8.0B, down from $8.7B in year-ago quarter

• Services: $19.6B, up from $17.4B in year-ago quarter

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