Apple Reports Strong Revenue and Profit Amid Mixed Demand in Key Markets
The day the US economy showed signs of recession, Apple disclosed a 6.7% year over year rise in profit, with Tim Cook optimistic about a solid finish to the year. The tech giant announced a net profit of $79,082 million for the period spanning October through June, reflecting a 6.7% increase from the previous year. In the first nine months of Apple’s fiscal year, which begins in October, the company posted revenue of $304,182 million, up from $282,457 million for the same nine months a year earlier. Shareholders benefited from a payout of $4.86 per share, compared with $4.42 a year prior.
During a briefing for investors, Cook acknowledged some softening in demand in certain regions but highlighted expectations for stronger revenue momentum in the upcoming quarter, which ends in September. He stated that billing should accelerate in the quarter ending in September relative to the June quarter results.
Breaking down the segments, the iPhone accounted for $162,863 million of revenue, representing more than half of the company’s total billing this period. While Apple does not disclose specific iPhone models in detail, analysts reasonably surmise that the bulk of the iPhone sales stems from the iPhone 13 lineup, released at the end of September prior to the analyzed period. Cook noted that there was no clear indication that macroeconomic conditions had a material impact on iPhone sales during this interval.
Behind the iPhone is a growing portfolio of services. These offerings, while still behind the hardware segment in scale, have become a central pillar of Apple’s strategy in recent years. They include subscriptions across media, gaming, fitness, and music, alongside other digital services. From October through June, services revenue reached $58,941 million, contributing a meaningful stream to the company’s overall mix. The segment covering clothing and home products, which includes items such as the Apple Watch and AirPods, contributed $31,591 million. The original Mac computer line also produced solid results, generating $28,669 million for this period, up from $26,012 million the year before.
On the other hand, tablet sales did not perform as well. iPad revenues fell year over year, totaling $22,118 million, down from $23,610 million previously, reflecting a softer demand backdrop in that category.
The company’s performance underlines a geography where a substantial portion of revenue is generated. North and South Americas, which include the United States, Canada, and other countries in the region, represented more than a third of total revenue and remain Apple’s largest market. After the Americas, the European market stood as a major pillar, followed by China. Japan and the broader Asia-Pacific region trailed behind in overall contribution.
Investors reacted positively to the results, with Apple’s shares rising in after-hours trading. The stock was noted at $162.72 per share following the close of regular trading on Wall Street, reflecting confidence in the company’s ability to navigate near-term headwinds and sustain growth in high-margin services and ecosystem-related revenue. The outcome reinforced perceptions that Apple’s diversified product and services mix helps cushion the business against fluctuations in any single product cycle, while still emphasizing flagship devices as a core driver.
Overall, Apple’s quarterly performance demonstrates a balanced mix of hardware strength and expanding services, with a clear emphasis on investing in areas that reinforce customer loyalty and recurring revenue. The company continues to push into new digital domains while maintaining a focus on innovation in devices and ecosystems that tie users more deeply to its platform. Observers will be watching for how demand trends unfold as the year progresses and whether the services business can continue to accelerate in line with strategic aims. [Source: Apple earnings release and investor briefings]