Apple reported its 2023 third-quarter results showing pre-tax profits declined by 1.44% year on year reaching $22.733 billion.
This took the nine-month pre-tax profits to $86.738 billion versus $94.446 billion in the same period last year.
Key highlights Q3 2023 vs Q3 2022
- Net Sales $81.797 billion -1.40% YoY
- Cost of Sales $45.384 billion -3.59% YoY
- Total operating expenses $13.415 +4.73% YoY
- Operating income $22.998 billion -0.34% YoY
- Net income $19.881 billion +2.26% YoY
- Basic Earnings per share $1.27 +5.83% YoY
- Diluted Earnings per share $1.26 +5.00% YoY
- Cash and cash equivalent $28.408 billion +20.14%.
- Total Assets $335.038 billion -5.02%
- Current term debt $7.216 billion -35.15%
- Non-current term debt $98.071 billion -0.90%.
Insights: Apple’s pre-tax profit decline primarily stems from a rise in operating expenditure driven by the increase in research and development investment.
- The company recorded a 9.49% year-on-year growth in research and development costs, amounting to $7.442 billion. This, in turn, contributed to a 4.73% growth in total operating expenses.
- Furthermore, there was a decrease in revenue. Sales of Apple’s iPhones, Macs, and iPads all experienced a decline compared to the same period in the previous year, in the quarter ending in June.
- However, the reduction in the provision for income taxes buoyed the 2.26% year-on-year growth in net income.
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