Apple Notches 2% Revenue Increase to New Record as iPhone, Services Sales Slow Down

Apple’s cash register kept ringing in the June quarter, as the tech giant posted a new quarterly revenue record of $83.0 billion, helping the company knock out a Wall Street earnings beat. But iPhone sales slowed down dramatically, and Apple’s services revenue fell versus the prior quarter.

For the June quarter, sales of iPhones — by far Apple’s biggest business segment — were $40.67 billion, up 2.8% year over year. Analysts had anticipated a decline in the iPhone segment after Apple had previously warned investors that the June 2022 quarter results would be affected by COVID-related supply-chain constraints and restrictions in China.

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Apple’s Services segment, which includes the App Store, Apple Music, Apple TV+, iCloud and other subscription businesses, generated $19.6 billion in sales for the quarter, up 12.1%. However, the services revenue was down about $200 million sequentially compared with a record $19.8 billion in the first three months of 2022.

Overall, Apple reported revenue of $83.0 billion, up 2 percent year over year, and quarterly earnings per diluted share of $1.20 for the three months ended June 25, which is its third quarter of fiscal 2022. Net income was $19.4 billion, down 10.6%. On average, Wall Street analysts expected $82.81 billion in revenue and earnings of $1.16 per share.

“This quarter’s record results speak to Apple’s constant efforts to innovate, to advance new possibilities, and to enrich the lives of our customers,” said Tim Cook, Apple’s CEO. “As always, we are leading with our values, and expressing them in everything we build, from new features that are designed to protect user privacy and security, to tools that will enhance accessibility, part of our longstanding commitment to create products for everyone.”

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