Retail Insight Network

Daily Newsletter

08 August 2023

Daily Newsletter

Apple posts 2023 third quarter revenue of $81.8bn

Sales of iPhones also declined to $39.6bn during the quarter compared to $40.6bn in the same period a year ago.

Technology giant Apple has reported a total revenue of $81.8bn in the third quarter (Q3) of fiscal year(FY) 2023, down 1% from $82.9bn in the corresponding period in FY22.

Sales in the Americas dropped to $35.3bn in Q3 FY23 from $37.4bn a year ago. Meanwhile, the company reported a sales total of $20.20bn in Europe over the quarter.

During the period ending 1 July 2023, sales of iPhones also declined to $39.6bn compared with $40.6bn in the same period a year ago.

The company’s operating income also dropped to $22.99bn from $23.0bn a year ago and its net income also improved to $19.8bn from $19.4bn in Q3 FY22.

Its diluted earnings per share (EPS) were $1.26 in Q3 FY23, an increase of 5% from $1.20 in the prior year's quarter.

In the year to date, the company’s net sales were $293.7bn, down from $304.1bn in the same period in FY22.

Its net income for the first three months of the FY was $74.03bn against $79.08bn a year ago.

Apple CEO Tim Cook said: “We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over one billion paid subscriptions and we saw continued strength in emerging markets thanks to robust sales of iPhone.

“From education to the environment, we are continuing to advance our values, while championing innovation that enriches the lives of our customers and leaves the world better than we found it.”

Last month, Apple and Amazon were fined a combined €194.1m ($218.03m) by Spain’s antitrust regulator CNMC for restricting competition on the Amazon website in the country.

APAC duty-free market expected to grow fastest, fueled by rising income levels and international travelers

Per latest GlobalData estimates, the global duty-free market retailing market was valued at $49 billion in 2022, its highest level ever as it bounced back from the pandemic impact, and is expected to grow at a CAGR of more than 28% during the period 2020-2026, driven by government initiatives, rising passenger numbers, major global events (for instance global sporting tournaments) and the renewed popularity of cruise trips. Infrastructure investments will also play an important role, particularly airport expansion and space refurbishment, and investments in arrivals duty-free formats. That said, growth will be held in check in the years ahead by the permanent erosion of disposable income from the heightened cost of living impacting demand for air travel. The duty-free market in the APAC region showed strong growth in 2022, as traveler numbers surged in response to the lifting of travel restrictions. To cater for rising demand in the region, many airports in the APAC area are expanding and modernizing, giving duty-free stores greater space that will allow them to attract more customers. The future of APAC duty-free retail is also being shaped by the adoption of technology. The rise in online shopping, mobile payments, and digital marketing are giving businesses new ways to connect with customers and improve the shopping experience.