Apple Services Thriving with Record Cash Flow, Despite Third Consecutive Quarterly Revenue Contraction
Apple’s fiscal Q3 2023 financials show minor declines in revenue for the company, but it remains a highly profitable entity. The Services segment, including offerings like iCloud plans, Apple Music, AppleCare, and the App Store, achieved an all-time high of $21.2 billion in revenue, growing by eight percent year-over-year. Despite this growth, iPhone, Mac, and iPad revenues all declined compared to the previous year, similar to the trend observed in the last quarter.
The iPhone segment experienced a slight decline, with revenue amounting to $39.7 billion, down approximately two percent from the previous year. Meanwhile, iPad sales saw a more significant decline of 19.8 percent, and Mac sales declined by 7.3 percent. The absence of any recent iPad hardware refresh likely contributed to the decline in iPad sales. On the positive side, Wearables (including the Apple Watch and AirPods) and accessories witnessed a modest growth of just over two percent, the only product category besides Services to experience growth.