Apple narrowly beat Wall Street expectations with its third-quarter earnings late Thursday, reporting a slight year-over-year rise in iPhone revenue and a 12 percent increase for its services division. But elsewhere, the company’s numbers dipped: Mac revenue fell 10 percent, a drop that CEO Tim Cook attributed to supply chain constraints and unfavorable exchange rates. But it also coincides with an industry trend of downward PC sales.
Earlier this month, Apple released a redesigned MacBook Air powered by the company’s M2 chip, but that didn’t factor into this quarter’s results. The new Air followed the launch of the updated 13-inch MacBook Pro in June. The Mac Studio desktop, Studio Display, M1-powered iPad Air and the latest iPhone SE went on sale in March. Bloomberg’s Mark Gurman has reported that Apple has a “flood” of new products lined up for the fall that will stretch into 2023.
Of this 10% drop in Mac sales year-over-year: Cook told me that supply constraints and currencies to blame.
— Steve Kovach (@stevekovach) July 28, 2022
Wearables revenue fell about 8 percent, while the iPad unit fell 2 percent. Overall, Apple still managed to set a revenue record for the June quarter, earning $83 billion on earnings per share of $1.20.
For its 2022 lineup of new iPhones, Apple is rumored to be preparing not one but two large 6.7-inch devices. These will be the iPhone 14 Pro Max and an iPhone 14 model with less frills. You can also expect the usual pair of 6.1-inch phones: the iPhone 14 Pro and the iPhone 14. The mini-sized iPhone won’t be part of this year’s updates. The new phones will feature upgraded cameras, with top-tier Pro models getting a faster processor and smaller, redesigned screen cutouts for Face ID and the selfie camera.
Apple continues to roll out its next wave of major software updates for iPhone, iPad, Mac, Apple Watch, and Apple TV. iOS / iPadOS 16, macOS Ventura and other updates are currently in public beta testing ahead of a broad release to all consumers in the fall. The iPhone launch will include new lock screen customization capabilities, the option to edit or unsend messages, and more features.
But like other tech giants in recent weeks, Apple plans to slow hiring in the face of a possible recession and economic downturn. Cook told CNBC’s Steve Kovach that Apple will be “deliberate” about hiring new employees.