Free Cash Flow was Up 27% in Apple’s 2023 Q2 Results

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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Important Notice 

  1. Watanabe & Brothers’ Investment is holding shares of Apple. 
  2. This report is provided solely for informational purpose and not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell any specific products. 
  3. Any opinions or statements expressed in this report are based on the author’s personal and subjective views, and are not the official views of the organization to which the author belongs.  In addition, although we have done our best efforts in making accurate assessments on the original financial statements, we cannot guarantee any complete accuracy of this report. We do not guarantee either that any future forecasts referred to in this report will certainly be realized. Investment in listed stocks, ETFs, etc. should be carried out under the responsibility of each investor, and even if the investor who read this report suffers a loss due to investment activities, Watanabe & Brothers’  Investment is not responsible for any liability.
  4. This report was originally prepared in English, and translated into the other languages with plugin utilizing Google Translation API. We hereby notify that the translations are provided only for the sake of reference, and any opinions or statements in this report should be interpreted in original English. We ask any investors reading this report to refer to the original financial statements issued by the company.
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