Revenue Drop For Apple Inc!? Why You Should Not Panic

Wintersman
2023-02-22

$Apple(AAPL)$ Apple Inc recently announced its Q1'23 results, which have shown a 5% YoY revenue decline, with quarterly earnings per diluted share of $1.88. However, despite this decline in revenue, there are several reasons why investors or potential investors should remain confident in the company.  

[微笑] Firstly, Apple's reported revenue has been negatively affected by the strengthening of the USD against other foreign currencies, with almost 58% of the company's total revenue coming from outside the US. As a result, Apple's topline has been affected when consolidating its total revenue in USD.  

[微笑] Secondly, the company's flagship products, the iPhone and Mac, saw a decrease in sales due to supply constraints caused by COVID-19-related measures in Apple's assembly facility in Zhengzhou, China, and the limited availability of its upgraded MacBook Pro. However, with the launch of the latest 14-inch and 16-inch MacBook Pros, the next quarter's sales for MacBooks are expected to improve.  ‌

[微笑] Thirdly, Apple's iPad and Services revenue has increased significantly. With the launch of its sixth-generation iPad Pro, iPad sales grew close to 30% YoY. Additionally, Services net sales, which includes sales from the Company's advertising, AppleCare, cloud, digital content, payment, and other services, achieved a historically high record of USD 20.8 billion.  ‌

[微笑] Lastly, Apple remains committed to returning value to shareholders, with USD 25 billion being returned back to shareholders in the form of dividends and share buybacks out of the USD 34 billion operating cash flow generated, which is a staggering percentage of ~74%.  

Modify on 2023-02-22 15:06

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  • vippy
    ·2023-02-23
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    I think a company that has 16 billion outstanding shares indicates many, many people want Apple stock.
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  • zinglee
    ·2023-02-23
    If SPX goes to 3900 we will be in the low $140's. $140.00 is only 5% away. This thing could go to $140.00 by accident.
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  • frosti
    ·2023-02-23
    As far as dividends go, the biggest Apple shareholders prefer share buybacks rather than higher dividends for tax reasons.
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  • bubblyx
    ·2023-02-23
    We will have to get the rif-raf out the hard way;by higher stock prices! A few bucks higher,and they will fade away.
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