Apple's Q4 2023 Earnings Summary

Julie Clover

Apple today held its fiscal fourth quarter 2023 (third calendar quarter) earnings conference call, where Apple CEO Tim Cook and Apple CFO Luca Maestri shared details about recent product sales, services growth, and Apple's plans for the future and more.

We've highlighted the most interesting takeaways from Apple's earnings report.


Apple's quarterly revenue fell one percent year-over-year to $89.5 billion, but services revenue hit a new record high. Services revenue was $22.3 billion, up 16 percent from $19.2 billion in the year-ago quarter.

For all of 2023, Apple's services category generated $85 billion compared with $78 billion in 2022.

App Store, advertising, iCloud, AppleCare, payment services and video all hit all-time revenues, and Apple Music achieved record revenues for the September quarter.

iPhone Sales

Revenue from iPhone increased during the quarter to $43.8 billion, compared to $42.6 billion in the year-ago quarter. ‌iPhone‌ However, revenue for the year fell to $200.6 billion from $205.5 billion last year.

Apple ‌iPhone‌ revenue set a revenue record for the September quarter.

According to Apple CEO Tim Cook, the iPhone 15 models sold better than the iPhone 14 models, but supplies of the iPhone 15 Pro and Pro Max were limited, which impacted overall ‌iPhone‌ revenue.

Cook said Apple is “working hard” to make more ‌iPhone 15 Pro‌ and Pro Max, and that the company expects to achieve supply and demand balance at the end of the holiday quarter. ‌iPhone‌ In the December quarter, revenue is expected to increase year-over-year.

Mac Sales

Mac sales fell significantly in the fourth quarter of 2023, with Mac revenue at 7.6 billion, down 34 percent ($11.5 billion) in the year-ago quarter. Mac revenue for all of 2023 was $29.4 billion, up from $40.2 billion in 2022.

Last year, Mac sales rose in September due to supply chain issues in June, a situation Apple has been unable to compete with this year. . Cook expects Mac revenue to increase next quarter thanks to the October release of M3 Macs, and he said negative growth of 34 percent shouldn't be taken as an indicator of underlying Mac performance.

Sales iPad

iPad sales weren't as bad as Mac sales, but ‌iPad‌ Revenue also declined. ‌iPad‌ The category brought in $6.4 billion, up from $7.1 billion in the year-ago quarter. Apple hasn't released a single new iPad this year, so the drop in ‌iPad‌ revenue is not a surprise.

In 2023 ‌iPad‌ Revenue was $28.3 billion, up from $29.3 billion in 2022. Apple CFO Luca Maestri said the ‌iPad‌ will “slow down significantly” due to changes in product launch timing. Last year, Apple released a new iPad Pro in the December quarter, and there are no new iPads planned in 2023.

Wearables, Home & Accessories

Wearables revenue also fell, coming in at $9.32 billion for the quarter compared to $9.65 billion in the year-ago quarter. Wearables revenue was $39.9 billion in 2022, down from $41.2 billion last year.

Annual revenue in the wearables category is expected to decline in the December quarter.

R&D Expenses

Apple spent a total of $30 billion on research and development in 2023, up from $26.3 billion in 2022. Apple CEO ‌Tim Cook‌ said Apple's increase in spending is due to investments in Vision Pro, artificial intelligence, machine learning and chips.

Active install base

Apple CFO Luca Maestri said that Apple's active installed base of devices reached new record levels across all Apple products and geographic segments.

Vision Pro

Apple CEO ‌Tim Cook‌ he was asked if he thought the process of launching Vision Pro and educating consumers would end up being similar to AirPods and Apple Watch, but he said no given the shopping experience.

“I'd say no There's never been a product like the Vision Pro, so we're intentionally putting it in our stores just to really pay a lot of attention to the last mile of it. We'll be offering demos in stores and it'll be a very different process than the usual “pick up and go” process.

Cook went on to say that Apple is seeing “huge excitement around Vision Pro.” Cook has tested some of the applications the developers are working on and says that “some really amazing things are coming out.”

The Vision Pro will initially be sold exclusively in the United States, and Cook's comments suggest that buyers may have to visit a retail store to make a purchase. Apple's Vision Pro website says the headset will be available to purchase both online and in retail stores, but Apple may ask customers to come into a retail store and pick up their online purchase to ensure it fits properly.

Bloomberg's Mark Gurman recently said that Apple will assemble Vision Pro headsets for customers in its stores, providing each user with a matching headband, light-protective film, and prescription lenses if needed.

Generative AI

Cook was asked how Apple would be able to monetize generative AI, to which he of course declined to comment, but said that Apple is “investing a lot” in AI and that in the future new products will appear. advances that will include generative artificial intelligence in the future.

Apple Silicon

An analyst asked Cook if it would ever be feasible for Apple to buy “from industry” . Cook said Apple silicon underpins the “core technologies” that Apple likes to control in its devices, and so he doesn't think the company is “going back to off-the-shelf shopping.”

“I'm happier today.” than yesterday than last week because we've made the transition that we've made, and I see the benefits of it every day,” Cook said.

Apple Search deal with Google

Cooka was asked to comment on its Internet search partners, with particular emphasis on the ongoing antitrust lawsuit Google faces from the U.S. Department of Justice.

Cooka said Apple has “important relationships” with his web search partners, but he will not enter into “commercial relationships” over the phone. Cook said he believes they are “equally important” and that Apple makes “decisions that we believe are in the best interests of our users.”

Read more

A A more complete picture of Apple's revenue by category can be found in our blog.


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