iPhone Sales Rise in Q2 FY2023, Defying Market Trend
iPhone Sales Growth
Apple reported mostly underwhelming results for the Q2 FY2023 (period ending April 1) [1] on Wednesday after Wall Street closed, against a difficult backdrop, but the iPhone shined.
The Numbers: Mac sales suffered, but the main Revenue generator – iPhones – bucked the global trend, with higher sales.
- iPhone sales grew around 1.5% compared to a year ago, to record March quarter of $51.334 billion. A sequential comparison shows decline, but the previous quarter is typically much stronger, since it includes the high-demand holiday season.
- Macs disappointed with sales of $7.168, marking a squeeze on both yearly and quarterly basis.
- Total Revenues dropped 4.5% y/y to $73.929 billion, despite the iPhone over-performance.
The Context: The smartphone and PC markets have been facing headwinds globally due to various factors, including maturity, saturation, chip shortages, broader economic slowdown and high inflation.
- Global Smartphone shipments declined 13% y/y in the first of quarter the year, according to research by Canalys. [2]
- Apple was the biggest smartphone seller worldwide in Q4, but lost the top spot to Samsung in Q1, with its shipments having declined to 58.0 million units and its market share to 21% as per Canalys. [2]
- Qualcomm (QCOM), which focuses on smartphone chips, reported a 17% y/y slide in Revenues in its core Handsets segment, for the quarter ended March 26. [3]
- The PC market has been contracting over recent quarters and shipments dropped by whopping 33% y/y in Q1, according to Canalys. Based on this report, Apple was the main loser among the five biggest vendors, "with total shipments of Macs dropping 46% to 4 million units". [4]
The Talk: During Thursday's relevant earnings call, CEO Tim Cook spoke of a "March quarter record" for iPhone Revenues, noting that iPhone 14 and 14 Plus "continue to delight users". For the Mac, he noted the "difficult" comparison to a year ago, due to the then rollout of the M1 chips. [5]
Market Reaction: The quarterly results were not particularly impressive, but markets reacted positively to the report and the iPhone Revenue growth that defied the declining sales of the smartphone industry, sending Apple stock higher in extended trading.
What's Ahead: Revenue growth will likely remain at current levels in the current quarter, while one of the next focal points is the firm's developers conference.
- CFO Luca Maestri expects year-over-year Revenue performance in the current June quarter (Q3 FY2023) to be "similar" to the just reported Q2 FY2023. [5]
- The tech giant will be hosting this year's Worldwide Developers Conference (WWDC) on June 5-9 [6], where it typically unveils new products and services. One of the 2022 highlights was the introduction of a BuyNowPayLater (BNPL) service. Apple is rumored to be working on a Virtual Reality (VR) headset and the upcoming WWDC could be the place to launch, according to Bloomberg. [7]
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 04 May 2023 https://www.apple.com/newsroom/pdfs/FY23_Q2_Consolidated_Financial_Statements.pdf | |
| Retrieved 04 May 2023 https://canalys.com/newsroom/worldwide-smartphone-market-Q1-2023 | |
| Retrieved 04 May 2023 https://d1io3yog0oux5.cloudfront.net/_061d72816a5a32a6796fb8868f5b27a9/qualcomm/db/773/7286/file/FY+2023+2nd+Quarter+Earnings+Release.pdf | |
| Retrieved 04 May 2023 https://canalys.com/newsroom/global-pc-market-q1-2023 | |
| Retrieved 04 May 2023 https://www.apple.com/investor/earnings-call/ | |
| Retrieved 04 May 2023 https://developer.apple.com/wwdc23/ | |
| Retrieved 11 Apr 2026 https://www.bloomberg.com/news/articles/2023-02-15/apple-pushes-back-mixed-reality-headset-debut-two-months-to-june |
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.