Apple had a huge quarter, but revenue growth is slowing

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All eyes are on Apple as we speak, after a tumultuous sequence of earnings stories dropped this week. Google dad or mum company Alphabet missed revenue expectations, whereas Meta (previously Facebook) recorded a higher profit than expected this quarter. Apple simply released its results and the company has carried out respectably in its second quarter of the fiscal year 2022. This was its greatest March quarter but, with revenues of $97.3 billion — a 9 p.c soar from the identical interval final year. On as we speak’s earnings name, CEO Tim Cook stated the outcomes have been “better than we anticipated.” That stated, it is nonetheless a drop from its outcomes final quarter, the place it broke all-time data with revenues of $123.9 billion. 

Apple additionally hit a new all-time excessive on its revenue from Services, which incorporates issues like subscriptions to TV+, Music and Fitness+. With its robust exhibiting on the awards circuit not too long ago, it is hardly a shock that TV+ is drawing in subscribers. Apple does not break down how a lot it makes particularly from every particular person service, so it is laborious to say simply how a lot influence exhibits like Coda or Ted Lasso have had. Notably, Coda‘s profitable of Best Picture on the Academy Awards makes Apple TV the primary streaming service to win in that class.

The remainder of the company’s merchandise continued to do effectively too, with revenues from Mac, iPhone and “Wearables, Home and Accessories” all having elevated year over year. On the decision, Cook highlighted the brand new Mac Studio and Studio Display that have been launched in March, in addition to the iPhone SE and the M1-powered iPad Air. Interestingly, the one section that faltered was iPad, raking in about $7.6 billion in comparison with round $7.8 billion the identical time final year. That kind of up-and-down efficiency is fairly typical for iPads, although. 

The wearables class was probably the most eye-catching, with Apple making $19.8 billion this quarter from gross sales of issues like AirPods and watches, in comparison with $16.9 billion this time final year. That’s greater than it comprised of Macs, which got here in at $10.4 billion this quarter (up from $9.1 billion final year). If you are protecting observe, which means the Services class made Apple virtually twice as a lot money as Macs, which is the following closest class (except for iPhones, which got here in at about $50.5 billion).

The company is internet hosting an earnings name at 5pm Eastern as we speak, and should shed some mild on what precisely helped its providers section carry out so effectively. We’ll be tuning in and can replace this story with any related updates, so do verify again later as we speak. 

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