Apple Q2 results: Profit up 2.3%, iPhone sales drop 2.4%
Strong performance in services segment offset dip in iPhone sales
Apple on Thursday reported 2.3% growth in profit at $19.9 billion for fiscal third quarter as strong performance in services segment offset dip in iPhone sales.
Its sales declined 1.4% for the fiscal third quarter ended July 1 at $81.8 billion and earnings per share rose 5% to $1.26.
Apple suffered a 2.4% drop in iPhone sales, which account for nearly half of total revenues.
Apple's research and development spending rose to $22.61 billion for the fiscal year so far, about $3.12 billion higher, as compared to same period last year.
Apple chief executive officer Tim Cook told Reuters in an interview that the increased R&D spending was in part driven by work on generative artificial intelligence, the same field that is driving spending at other big technology companies.
“We've been doing research across a wide range of AI technologies, including generative AI, for years. We're going to continue investing and innovating and responsibly advancing our products with these technologies to help enrich people's lives," Cook said. "Obviously, we're investing a lot, and it is showing up in the R&D spending that you're looking at.”
According to Reuters, Cook said that AI would show up in Apple products as new features. One such feature, he said, will be the iPhone's ability to transcribe voice mail messages in real time, starting this autumn.
Cook also told Reuters that Apple's iPhone sales in China grew by “double digits” and that sales were also high in other segments in China.
Apple’s sales in greater China region rose to $15.76 billion from $14.60 billion in last year's same quarter.
Apple's services segment revenue stood at $21.21 billion in the reported quarter.
Apple now has 1 billion subscribers on its platform, which includes both Apple services and third-party apps, up from 975 million a quarter ago, said Cook.
Shares of Apple dipped 1% at $189.28 in after-hours trading.
(With inputs from Reuters)
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
- Top Gainers
- Top Losers
- 52 Week High