December 1, 2023

Apple reported at present that it earned a web revenue of $23 billion on revenues of $89.5 billion for the quarter ending September 30. Revenues have been down 1 p.c from the identical quarter one 12 months in the past, which I’d name flat and even. However Apple famous that iPhone revenues have been the very best ever for the quarter, indicating that the brand new iPhone 15 household is off to a robust begin.

“At present Apple is happy to report a September quarter income file for iPhone and an all-time income file in Companies,” Apple CEO Tim Prepare dinner stated. “We now have our strongest lineup of merchandise ever heading into the vacation season, together with the iPhone 15 lineup and our first carbon-neutral Apple Watch fashions, a significant milestone in our efforts to make all Apple merchandise carbon impartial by 2030.”

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Leaving apart the controversy round that carbon-neutral declare, Apple’s iPhone and Companies companies have been the one that grew within the earlier quarter: Mac, iPad, and Wearables, Dwelling, and Equipment all delivered much less revenues than they’d a 12 months in the past.

The iPhone stays Apple’s crown jewel, after all, with $43.8 billion in revenues within the quarter, up 2.8 p.c year-over-year (YOY). The iPhone represented 49 p.c of Apple’s revenues. That’s truly up from final 12 months when the iPhone represented 47.3 p.c of Apple’s revenues in Q3 2022.

Apple’s Companies enterprise was once more its second greatest, with $22.3 billion in revenues, up 16.3 p.c YOY. Companies is now over half as huge because the iPhone by income.

As famous, Apple’s different companies all shrank in comparison with the year-ago quarter, however every carried out strongly. The Mac delivered $7.6 billion in revenues, down 33.8 p.c. The iPad got here in at $6.4 billion, down 10.2 p.c. And Wearables, Dwelling, and Equipment outperformed them each with $9.3 billion in revenues, down 3.4 p.c.

And perhaps that’s the true story right here. Regardless of its comprehensible makes an attempt to diversify its product choices, Apple remains to be very a lot the iPhone firm. The iPhone delivers 49 p.c of Apple’s revenues straight, however Companies and Wearables, Dwelling, and Equipment wouldn’t exist with out the iPhone and so one would possibly make the case that as a lot as $75 billion of Apple’s revenues—about 84 p.c general—come straight and not directly from that one product. On this method, Apple is much more like Google than it wish to admit: Over 71 p.c of Google’s revenues are from a single product as effectively, on this case promoting.

Put one other method, Microsoft’s revenues in that very same quarter have been $56.5 billion, and whereas the iPhone by itself fell in need of that quantity, the general iPhone ecosystem outperformed all of Microsoft as soon as once more. It’s a sobering comparability provided that Microsoft is the world’s second-biggest firm on this planet by market capitalization. Second solely to Apple, after all.