Apple experiences one other document quarter however exhibits indicators of lukewarm iPhone 14 demand

Apple reported its fiscal fourth quarter earnings on Thursday, tallying $90.1 billion in income and earnings per share of $1.29 — each above Wall Street expectations — in a interval when different tech giants aren’t faring so properly. Practically all of Apple’s divisions, together with iPhone, Mac, providers, and wearables, had been up yr over yr, apart from the iPad. But regardless of YOY progress, iPhone income got here in beneath estimates.

There’s been conjecture amongst analysts and different experiences that the iPhone 14 and iPhone 14 Plus are underperforming Apple’s expectations for the “regular” lineup, with most upgraders favoring the 14 Pro and 14 Pro Max. The Pro telephones embrace a sooner processor, upgraded digital camera system, and the brand new Dynamic Island interface. The quarter solely included eight days’ price of iPhone 14, 14 Pro, and 14 Pro Max gross sales; the bigger Plus model wasn’t launched till a number of weeks later.

Supply is constrained for the iPhone 14 Pro fashions and new Apple Watch Ultra, CFO Luca Maestri instructed The Wall Street Journal.

“We clearly countered the industry trends on the phone if you look at third-party estimates of what the smartphone industry did,” CEO Tim Cook told CNBC. He additionally reiterated that Apple is being “deliberate” in its hiring and is thus slowing down its tempo of bringing on new workers.

Apple’s providers division was up yr over yr, however solely by single digits. The firm simply raised subscription costs for Apple Music, Apple TV Plus, and its Apple One bundle, so that may give upcoming quarters a lift after this slowdown. The month-to-month worth of Apple Music solely went up by a greenback, nevertheless it marked an finish to the long-standing $9.99 / month fee for streaming music. Competitors like Spotify and Amazon Music may quickly observe go well with.

On the software program aspect, Apple rolled out iOS 16 and watchOS 9 through the quarter however waited till this week to launch iPadOS 16.1 and macOS Ventura. The iPad software program’s new Stage Manager characteristic has been met with criticism.

After asserting new iPads earlier this month, Apple is anticipated to launch upgraded 14-inch and 16-inch MacGuide Pros within the coming weeks.