Apple (NASDAQ: AAPL) announced its 2023 Q2 financial results on May 4, 2023. According to the announcement, total net sales were down 3% (YoY, 3 months). In addition, operating income and net income were down 6% and 3%, respectively.
Product sales were down 5%, but services revenue was up 5% (YoY, 3 months). Currently, services revenue accounts for 22% of the total net sales.
As for sales trends by product, iPhone was up 2% (YoY, 3 months). However, Mac was down 31% and iPad was down 13%. Geographically, Asia Pacific (excluding Greater China and Japan) recorded the highest growth rate, up 15% (YoY, 3 months). This was followed by Europe, up 3%. On the other hand, Americas showed weakest performance, down 8%, followed by Japan of down 7%.
Cash generated by operating activities recorded a cash inflow of USD 62,565 million, down 17% (YoY, 6 months). This figure was possibly affected by increase in inventories. Meanwhile, free cash flow was up 27% year-on-year, with a cash inflow of USD 63,439 million.
As explained above, Apple’s showed weak business performance in 2023 Q2. However, free cash flow is increasing and the company still remains financially healthy.
Watanabe & Brothers’ Investment will continue to invest in Apple from medium and long term perspective.
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