Apple Today’s earnings call covered the fourth quarter 2022 and was its first since 2023. During The call is Apple Tim Cook is the CEO Apple We’ve highlighted some of the best parts below from the CFO Luca Maestri’s call.

AI

Cook stated that artificial intelligence will have a significant impact on all services and products in the company’s future.

This is a key focus for us. This is a remarkable way to enrich customers’ lives. Take a look at some of our announcements in Fall Detection or Crash Detection. Or a bit back with ECG. These technologies have literally saved thousands of lives. We This space has enormous potential to impact almost everything we do. This technology is horizontal and not vertical so it can affect all products and services.

Service Revenue

However AppleThe quarterly revenue of the company was lower by five percent year-over-year. AppleRevenues for the Services segment reached an all-time record $20.8 billion Services Apple Music, Apple TV+, Apple AppleCare+ and Arcade are just a few of the many options available.

Apple Now, there are more than 935,000,000 paid subscribers. This is an increase of 150 million in the past 12 months. Apple also set revenue records for ‌iCloud‌, payments, and ‌Apple Music‌.

iPhone Sales

Apple The market was notified in November about shipment limitations for the iPhone 14 Pro. This warning let them know that they would ship fewer units than originally planned due to COVID-19 restrictions. The ‌iPhone 14 Pro‌ models were backordered throughout the holiday period, and as a result, iPhone sales were down year over year.

‌iPhone‌ revenue was at $65.8 billion, down from $71.6 billion in the year-ago quarter. Production has since improved, and ‌iPhone‌ shipping times are shorter.

Cook stated that customers are prone to choosing more expensive iPhones than they would in March due to November/December supply shortages. “It’s hard to estimate recapture because you have to know what would have happened, how many people would have bought down, and it takes awhile to get those reports in during the quarter,” Cook stated. He said that Apple It has been made “best guess” It was able to recapture the insights it provided for the March quarter.

Cook also said that ‌iPhone‌ revenue would have grown in Q1 2023 had it not been for the supply shortage.

Wearables Revenue

Revenues from wearables fell eight percent over the past year to $13.8 million. Cook claimed that the revenue from wearables declined despite this. Apple Continue to be “excited about the long term opportunity” Wearables.

AirPods are part of the wearables category. Apple You can watch it right now, but the future will include the mixed reality headset. Apple This year, it is anticipated that the company will launch.

Although revenue fell, Apple CFO Luca Maestri stated that Apple Due to record-breaking numbers of people purchasing watches, the Watch Install Base set an all-time high. Apple You can watch the quarter.

The Mac and the iPad

iPad revenue was up 30 percent thanks to the launch of new M2 ‌iPad‌ models, but Mac revenue saw a notable drop because there were no new Macs released in the final months of 2022.

Apple’s revenue from Mac was $7.7 Billion, down from $10.9 Billion in the previous quarter. ‌iPad‌ revenue was $9.4 billion, up from $7.2 billion in the year-ago quarter. Cook claimed that the overall figure was $9.4 billion. Apple It has been a “low share and a competitive advantage with Apple silicon,” This means that the company is “well positioned within the market” In the long-term.

March Quarter

Apple Although they did not offer any guidance, some directional insights were provided. Apple CFO Luca Maesteri stated that revenue year-over-year is similar to December quarter. Services and ‌iPhone‌ revenue are expected to be up, while Mac and ‌iPad‌ revenue will decline by double digits year over year.

Maestri said that the revenue in these categories would drop due to macro headwinds as well as difficult comparisons to last year’s quarter because of product release times.

U.S. Manufacturing

Cook was asked if components manufactured in the United States (such TSMC’s upcoming Arizona plant) would be more costly than those made elsewhere. However, he stated that he doesn’t anticipate manufacturing being any more expensive, which is what the other person implied.

“We don’t know what the impact will be at this point, but we’re all in in terms of being the largest customer for TSMC in Arizona,” Cook. “We’re very proud to take part in that.”

The average selling price is higher

Cook was asked about the reason for the greater average selling prices. Apple Next quarter will be a busy one. “sustainable” Cook stated that in tough macro environments, people will do anything for their country. “stretch” To get the very best that they can afford.

The smartphone, for us, the iPhone, has been so integrated into our lives that it includes their contact information, bank information, smart home information and many other parts. For many, it’s an important payment tool. It’s a category where people will go to great lengths to obtain the best possible price.

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This is a more comprehensive picture AppleYou can find our official results article detailing’s per-category earnings.