Apple records $83bn revenue in Q3; doubles revenue in India
What's the story
Despite challenging macroeconomic headwinds, tech giant Apple has managed to post impressive numbers in Q3 of 2022. The company recorded a revenue of $83 billion in the quarter. CEO Tim Cook attributed this to "double-digit growth in Brazil, Indonesia, and Vietnam, and a near-doubling of revenue in India." The Cupertino-based firm put up a strong show in both developed and emerging markets.
Context
Why does this story matter?
It is no secret that tech giants around the world are going through a tough period owing to supply constraints due to the pandemic and the prolonged Russia-Ukraine crisis. Most did not have the kind of quarter that they would have wanted. It seems that Apple is an exception to this. The company has surprised many and probably itself with its strong Q3 results.
Quarterly report
The company's revenue from services increased by 12%
Apple's revenue in the April-June quarter took a huge leap to $83 billion, a 2% year-over-year growth. In the earnings call, Cook said that the company posted record quarterly numbers in the Americas, Europe, and Asia-Pacific. The company's revenue from services increased by 12% to a record $19.6 billion. It also saw double-digit YoY growth in paid accounts and accounts with paid subscriptions.
iPhone
iPhone generated huge revenue in areas with low penetration
Apple's incredible Q3 numbers were powered by its great performance in developing countries such as India, Indonesia, and Vietnam. These are countries where the iPhone has very low penetration. The increased demand for the phone in these geographies was the engine behind the company's growth there. The firm saw a 94% YoY increase in its iPhone shipment, as per CyberMedia Research.
India
Apple's growth in India was driven by the iPhone
Apple had a strong showing in India last quarter, as the company nearly doubled its revenue in the country. iPhone was the driving force behind the growth. Although it is placed fifth in terms of shipments in the country, it is fourth as far as revenue is concerned. About iPhone, Cook said, "it's the product and the innovation within the product that's driving it."
Official words
The company performed better than expected: Cook
About Apple's strong performance, Cook said that the $83 billion revenue was "better than we expected despite supply constraints, strong foreign exchange headwinds, and the impact of our business in Russia." "Our supply constraints were less than we anticipated at the beginning of the quarter, coming in slightly below the range we discussed during our last call," said CFO Luca Maestri.