Apple Q2 2023 earnings: Mac sales way down while Services sets a new record

Apple on Thursday announced its second quarter 2023 earnings, posting revenue of $94.8 billion for the quarter, a 3 percent decline year over year, and quarterly earnings per diluted share of $1.52, which is unchanged from last year.

Apple beat the expectations of analysts that predicted revenue of $92.96 billion and $1.43 earnings per share.

Mac sales took the biggest hit, posting net revenue of $7.2 billion, a 31 percent decrease compared to the same quarter last year. iPad revenue was also down 13 percent to $6.7 billion. Apple did say, however, that the Mac and iPad reached all-time highs for their installed bases worldwide, but the company did not provide numbers.

Apple’s Wearables, Home and Accessories sales were flat, with $8.76 billion this quarter, compared to $8.8 billion.

However, Apple’s Services continue to grow, with net revenue this quarter of $20.9 billion, a new all-time record for the company and up from 5.5 percent from Q2 2022. iPhone net revenue grew 1.5 percent and set a March quarter record.

“We are pleased to report an all-time record in Services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” Apple CEO Tim Cook said in a press release. “We continue to invest for the long term and lead with our values, including making major progress toward building carbon neutral products and supply chains by 2030.”

As for guidance for the third quarter 2023, Apple expects results similar to Q2, assuming conditions do not change.