Apple’s Service Revenues were Up 8.2% in 2023 Q3

Apple announced its 2023 Q3 financial results on August 3, 2023. According to the announcement, total net sales were down 1.4% (YoY, 3 months). Among these, product sales were down 4.4% and service revenues were up 8.2%.

In addition, cost of sales was down 3.6% (YoY, 3 months). In this regard, cost of sales for products was down 5.7%. As for services, cost of revenues was up 11.8%.

Moreover, gross margin was 44.5% in 2023 Q3 (3 months; up 126 bp). As for trends of incomes, operating income was down 0.3% (YoY, 3 months). In addition, net income was up 2.3%.

Looking at geographical sales trends, Greater China grew the most at up 7.9% (YoY, 3 months). It was followed by Europe of up 4.8%. Meanwhile, Japan declined the most at down 11.5%. It was followed by the Rest of Asia Pacific of down 8.5%.

Apple Watch on a left hand of a man wearing a blue shirt
Photo by Luke Chesser on Unsplash

As for sales by product, wearable, home and accessories were up 2.5% (YoY, 3 months). However, sales of the other products are now shrinking. Especially, iPad declined the most at down 19.8%. It was followed by Mac of down 7.3%. Finally, operating cash flow was down 9.3% (YoY, 9 months).

Free cash flow was up 17.4%. Significant increase of free cash flow was mainly attributable to decrease of amount of purchases of marketable securities. 

Apple Inc. (NASDAQ: AAPL) Stock Chart

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