Apple was the only large tech company to beat Wall Street forecasts for the third quarter, posting top-line growth of 8% for the September quarter to reach $90.15 billion.
That said, Apple’s Services business unit, which encompasses the App Store and subscription services like Apple TV+ and Apple Music, recorded revenue of $19.19 billion in the period, up just 5% year over year. That’s compared with 26% growth in the year-earlier period. It’s also down $416 million sequentially from the July 2022 quarter, and off the Services group’s record $19.8 billion in the first three months of the year.
Looking to boost subscription revenue, Apple this week introduced its first price hikes for Apple TV+, which is going from $4.99 to $6.99/month in the U.S., and Apple Music, which is bumping up from $9.99 to $10.99/month for the individual plan.
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Overall, Apple reported sales of $90.15 billion — a record for a September quarter for the company — and net income of $20.7 billion, or $1.29 per share, for the three months ended Sept. 24. Analysts expected total revenue of $88.9 billion and earnings per share of $1.27, per Refinitiv.
Apple reported iPhone sales of $42.6 billion for the September quarter, up 9.7% year over year, representing 47% of total revenue. The company’s next-generation iPhone 14 began shipping in mid-September, just a little over a week before the end of its fiscal fourth quarter.
“This quarter’s results reflect Apple’s commitment to our customers, to the pursuit of innovation, and to leaving the world better than we found it,” Apple CEO Tim Cook said in a statement. “As we head into the holiday season with our most powerful lineup ever, we are leading with our values in every action we take and every decision we make.”