(Picture source: Unsplash)
On October 27, Eastern Time, Apple (NASDAQ:APPL) released its fourth quarter of 2022 (hereinafter referred to as the third quarter) financial report ended September 24.
financial report shows that the company's total revenue in the third quarter was US$90.146 billion, and increased by 8.1% year-on-year, setting a record high in revenue in the third quarter in history; net profit was US$20.721 billion, a year-on-year increase of 0.83%; diluted earnings per share was US$1.29, an increase of 4% compared with US$1.24 in the same period last year.
Among them, is divided by business line. In the third quarter, iPhone mobile phone revenue was US$42.626 billion, a year-on-year increase of 9.67%, lower than analysts' expectations of US$42.67 billion; paid service business revenue, including Apple Music, was US$19.19 billion, a year-on-year increase of 4.98%; Mac revenue was US$11.508 billion, a year-on-year increase of 25.39%; iPad revenue was US$7.174 billion, a year-on-year decrease of 13.06%; wearable devices, home products and accessories revenue was US$9.65 billion, a year-on-year increase of 9.85%.
by region, in the third quarter of Apple Greater China revenue was US$15.47 billion, an increase of 6% from US$14.563 billion in the same period last year, ranking fourth in the region; North America and Europe revenue were US$39.808 billion and US$22.795 billion, an increase of 8.1% and 9.6% year-on-year; Japan's revenue was US$5.7 billion, a decrease of 4.86% year-on-year; other Asia-Pacific revenue increased by 22.75% year-on-year.
At the financial report meeting, Apple CEO Tim Cook (TimCook ) blamed the slowdown in revenue this quarter on the impact of foreign exchange, believing that if the US dollar had not strengthened, Apple's third-quarter revenue should have double-digit growth. "There were more than 600 basis points in the quarter. So that's a big (impact). Without the forex headwind, we could have grown double-digitly."
Apple CFO Luca Maester said that the slowdown in service industry revenue was due to the impact of foreign exchange and the slowdown in online advertising and gaming businesses. She also said that Apple is working hard to meet demand due to strong demand from the iPhone 14 Pro model and smartwatch Apple Watch Ultra and the supply is limited.
Regarding the abnormal phenomenon of iPhone 14 Pro sales popularity "instead of falling but rising", Guo Tianxiang, senior analyst at China IDC, told Titan Media App that although the domestic mobile phone market is weak this year, in comparison, the high-end market has been less affected. According to IDC data, in the third quarter of this year, the market share of high-end mobile phones above US$600 (excluding tax) reached 21.9%, a year-on-year increase of 1.5% and a month-on-month increase of 1.9%.
"So we see that various manufacturers continue to make efforts in the high-end market and adhere to their respective high-end routes, such as the folding screen products launched one after another, such as the hot sales of the Huawei Mate 50 series, and the popularity of the Apple 14 Pro series in the market. High-end market users are less affected by the external economic environment, have sufficient budgets, and have less considerations for price factors. When the product is attractive and differentiated, it will still be welcomed by users." Guo Tianxiang said.
IDC announced the top five global smartphone shipments in Q3. However, from the perspective of the entire mobile phone market this year, consumer electronics demand has slowed down, coupled with the U.S. interest rate hike inflation, although the new iPhone 14 series completed two weeks of sales in the third quarter, it still cannot save Apple's hardware revenue decline, demand has rapidly declined, inventory is high, and supply confidence is sluggish. The global mobile phone market report released by
IDC today showed that global mobile phone shipments in the third quarter of 2022 fell by 9.7% year-on-year to 301.9 million units, which has declined for five consecutive quarters. Other mobile phone market data also show that global and Chinese mobile phone market shipments declined in Q3, but among them, Canalys pointed out that iPhone sales in the Chinese market soared by 36% to 11.3 million units in the quarter.
Guo Tianxiang told Titanium Media App that the overall mobile phone market is sluggish this year and it is difficult to rebound next year. It is difficult for the economic environment to change significantly in the short term, and consumer confidence needs to be restored for a long time. Various manufacturers have also changed their radicalization in the past two years for the expected goals for next year and have turned into more conservative operating strategies to control inventory. So now it is preliminary to judge that the market is expected to be not much different from this year.
"At present, some manufacturers' strategies are mainly divided into two parts. The high-end route continues, and more expensive and better products will be launched.At the same time, some mid- and low-end products are constantly lowering prices to attract consumers, consume inventory or ensure shipments. Overall, this strategy has achieved certain results. High-end products bring more benefits and are more powerful in brand building. The continued volume of low-end products has also eased the high inventory level accumulated previously. It is expected that the overall market inventory level will return to normal as early as the end of this year or the beginning of next year. "Guo Tianxiang said.
Although Apple did not release its performance guidance for the fourth quarter (First quarter of 2023), Apple's CFO predicted on the earnings call that 's annual revenue growth rate in the next quarter will be lower than 8.1% in the third quarter, and the annual growth rate of Mac sales will be lower than that of this quarter. Service revenue is expected to continue to grow, but may be affected by the overall macro environment, and growth may slow down.
Cook said in an interview with CNBC after the financial report was released that due to the impact of the macro environment, Apple has already released the Recruitment speed slowed down.
, affected by financial report guidance, Apple's stock price fluctuated and fell after the market, and then turned red, rising 0.41% after the market. As of Thursday's closing, Apple's stock price fell more than 3%, to $144.80 per share.
, Apple's cumulative decline this year, and its market value shrank by $35 billion in one year, but its performance is still better than the S&P 500 and Nasdaq Comprehensive Index , both of which fell 20% and 31% respectively. (This article was first published on Titanium Media App, author | Lin Zhijia)
