Apple Quarterly Revenue Dips 3% In Tough Economic Climate, But Results Beat Wall Street Expectations

Apple struggled in a tough economic climate during the quarter ending March 31, but still managed to beat Wall Street expectations.

Total revenue in the company’s fiscal second quarter dipped 3% from the year-earlier period to $94.8 billion, while earnings per share were flat at $1.52.

The tech giant set an all-time record for services revenue during the period, with $6.065 billion, up 12% from the year-ago frame. While hardware remains an essential component of the company’s financials, services (including Apple TV+, Apple Music, iCloud and others) has been a point of emphasis in recent years. Total subscriptions for all services reached 970 million.

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Apple hit a new high for iPhone sales during any January-to-March quarter, with $51.3 billion. While that tally was up only 1.5% over the same quarter in 2022, it bucked the trend among other makers of smartphones, computers, tablets and other electronic devices. After a boom during the Covid pandemic, sales in the sector have cooled noticeably as recession fears and surging inflation have spooked many consumers. The Federal Reserve raised core rates again by a quarter-point on Wednesday, sending new spasms of angst through the markets.

Shares in Apple, which shed 1% during the regular trading day to close at $165.79, perked back up 1% in after-market trading. They have risen more than 30% in 2023 to date amid a broader rebound for the tech sector, which had its worst year in more than a decade in 2022.

CFO Luca Maestri noted that the company’s board has authorized $90 billion in stock buybacks. Apple also raised its dividend by 4% to 24 cents a share, which Maestri said was the 11th straight year it has increased. The move came after Paramount Global stock took a beating due in large part to management’s decision to slash the company’s dividend by 79%.

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