After a strong quarter earlier this year, Apple continues to break records. According to that the company’s financial results released today, it reports record sales of $83 billion, up 2 percent from the same period last year. Apple also said it hit an all-time high for its installed base of active devices “in every geographic segment and every product category.” However, the company’s profits are down a full 11 percent, and while iPhone sales continued to grow, sales of Macs and wearables fell.
It’s worth noting that Apple’s recently announced MacBook Air with the M2 chip isn’t shipping until this month, so numbers for Macs are likely to rise in the next quarter. Given the devices the company is expected to launch in the fall, it’s also possible that consumers are waiting for new products and waiting out ongoing inflation.
Apple CEO Tim Cook said in a press release, “This quarter’s record results speak to Apple’s continued efforts to innovate, create new possibilities and enrich the lives of our customers.” The company’s CFO Luca Maestri added : “Our June quarter results have again demonstrated our ability to run our business effectively despite the difficult operating environment.”
While the company’s earnings call, Cook said that the iPhone set a “record in the June quarter for both sales and adoption of the iPhone.” Sales of iPhones actually increased year over year to $40.7 billion from $39.6 billion. In response to a question about inflation affecting consumer demand, Cook said that while the macroeconomic environment didn’t have an obvious impact on iPhones, “Mac and iPad were so dependent on supply that we didn’t have enough product to… to test demand.” However, for the wearables, home and accessories categories, “we got some impact there that we would attribute to the macro environment,” he said.
Cook also discussed how the company welcomed developers to Apple Park at WWDC this year, calling it “a reminder of the economic miracle that the App Store represents.”
He added that “the iOS app economy supports more than 2.2 million jobs here in the United States and many more around the world.” Apple prevented “nearly $1.5 billion in fraudulent transactions,” Cook said, and halted “over 1.6 million risky and vulnerable apps and app updates.”
According to Maestri, Macs generated sales of $7.4 billion “despite supply bottlenecks”. The iPad install base hit a new all-time high this quarter, with more than half of the subscribers during the period being new users. Meanwhile, wearables sales were $8.1 billion, down 8 percent from the same period last year, “as we deal with headwinds in foreign exchange rates, different time-to-market for household and accessory products and supply shortages, and the overall macroeconomic environment”. Maestri said.
Still, the company set a new all-time record for the “installed base of devices in this category.” More than two-thirds of the people who bought an Apple Watch during the quarter were new to the company, Maestri found. Apple also saw a strong performance in its paid subscription products, with more than 860 million paid subscriptions across all services it offers.
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