Apple (AAPL) Q4 2022 iPhone and Services revenue segments miss expectations

Published , by TJ Denzer

Apple has reported on its Q4 2022 finish and by most metrics, the company had a fairly successful quarterly finish. Its revenue and earnings-per-share (EPS) were strong in Q4 2022, beating out most estimates. However, its iPhone and Services revenue segments didn’t quite perform as well. Revenue for both sections were down versus expectations for the quarter.

These metrics were part of Apple’s Q4 2022 earnings results, which were shared on its investor relations website on October 27, 2022. Where the company reported a number of successes, including above-estimate revenue and EPS finishes and solid gross margin for the quarter, iPhone and Services revenue were a couple segments that fell short against their estimates. IPhone revenue came in at $42.63 billion, which was just shy of the expectation at $43.21 billion. Meanwhile, Services revenue came in at $19.19 billion, also short against the $20.10 billion estimate set for it. Even so, these metrics were still up year-over-year for the company.

Apple parred back production of its higher end iPhone 14 models to match slowing demand. This may have also contributed to its lower iPhone sales in Q4 2022.
Source: Apple

Apple CEO Tim Cook also shared some words on the matter of iPhone and Services performances for the quarter, as shared from the Q4 2022 earnings results below:

It’s worth noting that while Cook claims that the company was supply constrained, Apple also reportedly parred back its higher end iPhone 14 production due to slowed demand for the products. It will be interesting to see if demand picks up, especially as the company prepares to comply with EU law regarding USB-C chargers in its upcoming line of products. Stay tuned for more financial quarterly reporting from various tech companies as fiscal quarters continue to end throughout the industry.