On November 3rd, Beijing time, Apple released its financial reports for the fourth quarter and full year of the 2023 fiscal year as of September 30th. In the macro "cold winter" market of consumer electronics, sales of Apple's iPhone 14 series and other products have cooled compared to previous products, leading to quarterly and annual revenue entering a downward channel.
Entering the longest quarterly downward channel
According to the financial report, Apple's total net sales in the fourth quarter were $89.498 billion, a decrease of 1% from $90.146 billion in the same period last year; The net profit was $22.956 billion, an 11% increase from $20.721 billion in the same period last year.
For the entire fiscal year 2023, the total net sales were $383.285 billion, a decrease of 3% from $394.328 billion in the previous year; The net profit was $96.995 billion, a decrease of 3% from $99.803 billion in the same period last year.
This is the fourth consecutive quarter that Apple has recorded an annual decline in revenue, setting a record for the longest decline since 2001.
In the fourth fiscal quarter, iPhone was the only category among all hardware products that achieved revenue growth. During the period, the net sales of the iPhone business were $43.805 billion, an increase of 3% compared to $42.626 billion in the same period last year; The net sales of the Mac business were $7.614 billion, a 34% decrease from $11.508 billion in the same period last year; The net sales of the iPad business were $6.443 billion, a 10% decrease from $7.174 billion in the same period last year; The net sales of wearable, home furnishings, and accessories businesses were $9.322 billion, a decrease of 3% from $9.65 billion in the same period last year.
According to Counterpoint, a market consulting firm, in "Global smartphone shipment market data (Q3 2021-Q2 2023)", Apple's market share reached 23%, 21%, and 17% from the fourth quarter of 2022 to the second quarter of 2023, ranking first, second, and second respectively. However, in terms of shipment volume, the shipment volume during the period was 70 million units, 58 million units, and 45.3 million units, respectively, a decrease of 14.2%, 1.7%, and 2.6% year-on-year.
By region, in the fourth fiscal quarter, the net sales of Greater China were $15.084 billion, a decrease of 2.5% from $15.47 billion in the same period last year; The net sales revenue in the Americas was 40.115 billion US dollars, an increase of 1% from 39.808 billion US dollars in the same period last year; The net sales in Europe were $22.463 billion, a decrease of 1% from $22.795 billion in the same period last year; Japan's net sales were $5.505 billion, a decrease of 3% from $5.70 billion in the same period last year; The net sales of other Asia Pacific regions were $6.331 billion, a decrease of 1% from $6.373 billion in the same period last year.
Looking ahead to the iPhone 15 and AI market
Since entering the last quarter of 2023, which is the first quarter of Apple's new fiscal year, the focus of Apple's performance growth has been on the iPhone 15 series, the new generation MacBook Pro, and iMac. Apple held grand press conferences in September and late October to promote these new products, respectively.
Regarding this financial report, Apple CEO Cook discussed the latest released iPhone 15 series phones, the Chinese market, and generative artificial intelligence (AI) during a subsequent conference call.
Cook said that in the fourth fiscal quarter, the iPhone set a record revenue in Chinese Mainland, accounting for four of the top five best-selling mobile phones in Chinese cities.
Regarding the newly released iPhone 15 series, Cook believes that sales will be better than the Phone 14 series launched last year. Cook said, "If you look at the performance of iPhone 15 during this period and compare it with iPhone 14 in the same period last year, you will find that iPhone 15 performs better than iPhone 14
Among them, the mid to high end iPhone 15 Pro and Pro Max are in a situation of "insufficient supply". Cook stated that Apple is "working hard" to produce more iPhone 15 Pro and Pro Max. We firmly believe that we will achieve supply and demand balance later in the quarter (October December), "he said.
In addition, the market is also very concerned about Apple's commercialization pace in generative AI. Cook stated that Apple has "invested a considerable amount of money" in AI.
Cook stated that Apple plans to adopt a "responsible" attitude when delving into generative AI technology. There are market rumors that Apple may launch some major AI updates in 2024, some of which will use generative AI technology.