Apple Q2 Results: Will strong iPhone sales push Apple share price higher?

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Apple q2 earnings

Apple share prices gained about 3% in after market trading on May 5, 2023, taking support from a strong jump in iPhone sales at a time the global smartphone market witnessed a slowdown. 

According to a report published by research firm Canalys, global smartphone shipments fell 13% in January to March, whose data also showed Apple gained market share from Android phones. During the same period, Apple sold $51.3 billion worth of iPhones, a 1.5% jump from the corresponding quarter last year. 

 For a more detailed analysis into Apple share price and Apple financials, click here.

iPhones accounted for 54% of Apple’s total sales, followed by its services business like Apple care which accounted for 22% and wearables like iWatch contributed 7% to Apple’s total sales. 

The smartphone maker during its earnings release also mentioned that the company’s focus would now be to develop its business presence in emerging markets like India, Middle East and Latin America. 

Apple during the Jan-March quarter opened two new stores in India - in Mumbai and Delhi. 

Apple Q2 Results: Highlights

  • Apple reported strong iPhone sales despite slump in global smartphone market.
  • Apple bets on emerging markets like India to drive future revenues.
  • Apple made record sales growth in South Asia, Latin America and Middle East.
  • Apple declared dividend of $0.24 per share during the quarter.
  • Apple's revenue and profit fell, but beat analyst expectations.

Apple Q2 Results: Share Price Performance

 1 month6 months1 year5 years
Apple Share Price Performance1.2%19.3%5.8%251.6%

(Data as on May 4, 2023)

Apple Q2 Results: Revenue Performance 

Apple’s total revenue or net sales fell 2.6% during the Jan-March quarter compared to the corresponding quarter last year, ahead of expectations for a 4.4% decline, according to Refinitiv data. 

 Q2FY23Q2FY22% change
Total Revenue$28.6 billion$27.9 billion+3%

Apple Q2 Results: Segment Revenues

Segments$ value% contribution to total sales
iPhone$51.3 billion54%
Mac$7.2 billion7.60%
iPad$6.7 billion7.10%
Wearables & Accessories$8.8 billion9.30%
Services$20.9 billion22%

Apple Q2 Results: Geographical Revenue Breakdown

Geographies$ value% contribution to total sales
Americas$37.8 billion39.80%
Europe$23.9 billion25.2%
Greater China$17.8 billion18.80%
Japan$7.2 billion7.90%
Asia Pacific$8.1 billion8.50%

Apple Q2 Results: Net Profit

Apple's net profit slipped 3.2%, however it beat analyst expectations which was for a higher drop in profits for the quarter amid rising global uncertainties like inflation and recession fears. 

 Q2FY23Q2FY22% change
Net Profit$24.2 billion$25 billion-3.2%

Apple Q2 Results: Analyst View

  • Jefferies has a ‘buy’ rating on the firm with a share price target of $195.
  • Atlantic Equities has a ‘buy’ rating on the firm with a share price target of $200.
  • Canaccord Genuity has a ‘buy’ rating on the firm with a share price target of $185.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.