Apple narrowly outperformed Wall Street’s expectations with its Q3 results on Thursday afternoon, reported a slight year-over-year increase in iPhone revenue and a 12 percent jump for its services division. But elsewhere, the company’s numbers plummeted: Mac revenues fell 10 percent — a drop CEO Tim Cook attributed to supply chain constraints and unfavorable exchange rates. But it also fits into an industry-wide trend of declining 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 improved 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 in the pipeline for the fall and extending into 2023.
About that 10% drop in Mac sales yoy: Cook told me supply constraints and foreign exchange were to blame.
— Steve Kovach (@stevekovach) July 28, 2022
Wearables sales were down about 8 percent, while the iPad unit was down 2 percent. Overall, Apple still managed to set a record revenue for the June quarter, with $83 billion and earnings per share of $1.20.
For its 2022 line of new iPhones, Apple would 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 fewer frills. You can also expect the usual pair of 6.1-inch phones: the iPhone 14 Pro and iPhone 14. The mini iPhone will not be part of the updates this year. The new phones will feature improved cameras, with the top-end Pro models getting a faster processor and redesigned, smaller screen cutouts for Face ID and the selfie camera.
Apple continues to develop the next wave of major software updates for the 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 wide release to all consumers in the fall. The iPhone release includes new customization options for the lock screen, the option to edit or delete messages, and more features.
But like other tech giants in recent weeks, Apple plans to slow its hiring in the face of a potential economic downturn and recession. Cook told Steve Kovach of CNBC that Apple will be “deliberate” in hiring new employees.