Apple reports record $90.1 billion Q4 revenue, but iPhone disappoints

Nearly every Apple division exhibited growth except for iPad, which dropped 13 percent year-over-year

iPhone 14 Plus

Apple generated $90.1 billion USD (about $122.2 billion CAD) in revenue in the fourth quarter of 2022, a record for the September quarter.

This marks a nine percent year-over-year increase, and helped bring Apple’s total 2022 fiscal year revenue to $394.3 billion USD (about $534.8 billion CAD) — itself an eight percent increase year-over-year.

That said, the iPhone company didn’t perform as well as expected, generating $42.63 billion USD (about $57.83 billion CAD). While this was a 9.67 percent year-over-year growth for the iPhone brand, it was below the estimated $43.21 billion USD (about $58.62 billion CAD). This suggests a softer demand for the tech giant’s latest iPhones, the iPhone 14 and iPhone 14 Pro and Pro Max.

Speaking to CNBC, Apple CEO Tim Cook insisted that iPhone sales were strong, stating the company has brought in more “switchers” — those who bought an iPhone after owning an Android device. He also said there were supply constraints on the iPhone 14 Pro.

Notably, nearly all of Apple’s brands exhibited growth this quarter, with the exception of the iPad, which dropped 13.06 percent year-over-year to $7.17 billion USD (about $9.73 billion CAD). The latest iPad models, the iPad (2022) and iPad Pro, launched earlier this week.

Mac experienced the most significant growth, generating $11.51 billion USD (about $15.61 billion CAD) vs. an estimated $9.36 billion USD (about $12.7 billion CAD) — a 25.39 percent year-over-year increase.

Other Products revenue, which includes the Apple Watch, came in at $9.65 billion USD (about $13.09 billion CAD) — a 9.85 percent year-over-year jump and above the $9.17 billion USD (about $12.44 billion CAD) estimate.

Finally, Apple’s Services division, consisting of the likes of the App Store, iCloud and Apple Music, brought in $19.19 billion USD (about $26.03 billion CAD). This was up 4.98 percent from Q4 2021, but below the projected $20.10 billion USD (about $27.26 billion CAD).

As is the case since 2020, Apple didn’t provide any guidance for Q1 2023. However, it does have the aforementioned new iPads, as well as the recent increase price of Apple Music, Apple TV+ and Apple One.

Source: Apple