Apple released its second quarter earnings report after the bell on Thursday, revealing the company beat analyst expectations on iPhone sales, although Mac and iPad sales fell short of expectations. Revenues were also down 3% year over year.
Like other electronics-makers, Apple is contending with declines in demand for PCs and tablets. Chipmakers Intel (INTC) and AMD (AMD) both have reported dramatic declines in chip revenues in the current environment.
Apple reported revenues coming in at $94.8 billion versus a $92.6 billion expectation. Adjusted earnings per share came in at $1.52 versus a $1.43 expectation. iPhone revenues were $51.3 billion versus a $48.9 billion expectation. Services came in at $20.9 billion versus $21.1 billion expected. Mac revenue was $7.1 billion versus a $7.7 billion expectation. iPad revenues came in at $6.6 billion versus a $6.7 billion expectation. Wearables generated $8.7 billion versus an $8.5 billion expectation.
Apple shares rose 2% after the announcement.
Apple’s performance ran counter to the trends in the smartphone market. Qualcomm (QCOM) reported on Wednesday that it suffered a 17% decline in second quarter revenue, and handset revenue had fallen 17%. Qualcomm noted that it did not see that trend changing in the third quarter, as it foresees continued weakness in the sector.
Apple was still hit by the fall in demand for PCs however, with both Mac and iPad revenue falling year over year. Globally, computer shipments are down 30% year over year in the first quarter of 2023, according to data from Gartner. Intel has been particularly hard-hit, with first quarter revenue falling 36% year over year, and its PC chip business falling 38%. AMD saw even worse performance, as its chip revenue plummeted 64% for the quarter.
Apple is preparing to debut its new AR/VR headset at its annual WWDC conference. The highly anticipated device, which Apple has still not confirmed even exists, may provide the company with a new revenue steam, and turn the company into a force in the still-developing VR market.
