Apple’s fiscal fourth-quarter earnings report paints a rosy picture of the company’s sales, showing demand for the iPhone 15 series is unexpectedly high and sets an all-time record for the quarter.
While many industry experts criticized the iPhone 15 series due to minor changes and offering no significant improvement over its predecessor, the sales figures tell a different story. As per the report, Apple generated $43.81 billion from selling iPhones in the fourth quarter of 2023. This is a 2.8% increase in revenue compared to the same quarter last year, in which Apple could make $42.36 billion.
Of course, Apple’s total revenue from iPhone sales in the 2023 fiscal year has dropped by 2.4% and reached $200.58 billion. In 2022, the tech firm took in $205.49 billion in iPhone revenue. Apple further added it expects overall revenue to be flat year-over-year during the fiscal first quarter of 2024. The timeframe also includes the holiday shopping season.
Apple’s quarterly revenue from iPhone sales sets an all-time record
While the iPhone is the greatest source of revenue for Apple, services also made up a large portion of revenues in the fiscal fourth quarter. As the second-largest segment, Services took in $22.31 billion during the quarter and $85.20 billion in the 2023 fiscal year.
In 2022, Apple made $78.13 billion from the Services vices segment. The recent numbers show a 9% increase in Services revenue for the company. Apple’s revenue from the services segment shows significant growth from 2016 onwards. In 2016, the tech firm made only $24.3 billion from Services.
The sales of the Apple iPad are disappointing. From $7.17 billion in the fourth quarter of 2022 to $6.44 billion in the fourth quarter of this year, sales of the iPad tablet series fell by 10.2%. The iPad’s fiscal 2023 annual gross was $28.30 billion, a 3.4% decrease from the $29.29 billion in fiscal 2022.
The Apple Watch and AirPods, two of Apple’s best-selling items, are also facing a decline in sales. During the fiscal fourth quarter of this year, the Wearables, Home, and Accessories business brought in $9.32 billion in revenue, a 3.4% decrease from the $9.65 billion the division brought in during the same quarter the previous year. This segment’s full-year revenue of $39.85 billion represented a 3.4% decrease from the $41.24 billion reported for the fiscal year 2022.
While Apple sales in Europe, Greater China, Japan, and the Rest of Asia Pacific are declining, the company’s sales in North and South America are rising. Apple sales in this region grew from $39.81 billion last year to $40.12 billion in 2023.
Apple’s overall revenue for this quarter was set at $89.50 billion, which is down from $90.15 billion during the same quarter last year.