Apple revenues drop 1% to $81.8bn in Q3

Apple has announced that its revenues dropped 1% year-on-year to $81.8bn (£64.4bn) for the third quarter ended 1 July 2023.

Furthermore, the company’s gross margin was $36.4bn (£28.6bn) up from $35.9bn (£28.3bn) in the same period last year.

The Americas represented Apple’s largest market with net sales of $35.4bn (£27.9bn) down from $37.5bn (£29.5bn).

This was followed by Europe which saw net sales of $20.2bn (£15.9bn), up from $19.2bn (£15.1bn) last year.

Greater China was the next biggest market seeing net sales of $15.8bn (£12.4bn), up from $14.6bn (£11.5bn).

Despite this the company’s quarterly earnings per diluted share were $1.26 (£0.99), an increase of 5% year-on-year.

The company also announced that it saw an all time record revenue in its services sector driven by over one billion paid subscriptions.

As a result Apple’s board of directors has declared a cash dividend of $0.24 (£0.19) per share of the company’s common stock.

Tim Cook, CEO, said: “We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone. From education to the environment, we are continuing to advance our values, while championing innovation that enriches the lives of our customers and leaves the world better than we found it.”

Luca Maestri, CFO, added: “Our June quarter year-over-year business performance improved from the March quarter, and our installed base of active devices reached an all-time high in every geographic segment. During the quarter, we generated very strong operating cash flow of $26 billion, returned over $24 billion to our shareholders, and continued to invest in our long-term growth plans.”