A mixed bag in hardware land as Apple reports its third quarter profits today. In spite of lowered expectations, iPhone revenue was up slightly year-over-year, from $39.5 billion to $40.7 billion — amounting to a 3% jump from the same time period in 2021. But while the company’s overall picture beat Wall Street expectation, things fared less well across other categories. Mac, iPad and the combined wearables/home category all took a hit for the quarter.
Mac took the biggest hit of around 10%, as revenue dropped from $8.2 billion to $7.4 billion. Wearables/home/accessories, which includes the Apple Watch, AirPods and HomePods, dropped around 8%, from $8.8 billion to $8.1 billion, while iPad dropped slightly from $7.3 billion to $7.2 billion. Soft numbers are certainly no surprise, given strong economic headwinds. Continued supply chain issues, coupled with inflation have had an impact on both buying habits and companies’ ability to get product in front of consumers.
Apple’s products have long been regarded as something of a bellwether for luxury good purchases, and the company’s performance in a word (or three) is easily summed up as: “could be worse.” Not banner growth for the company, but increased iPhone revenue (if only slight) among much bleaker macro trends for the smartphone industry is a vote of confidence for the company.