Apple 3Q23 10-Q Takeaways, Apple's Share Buyback Update, Apple R&D Expense Growth Slows
Happy Wednesday. Today’s update will conclude our Apple 3Q23 earnings review.
Friday (Aug 4): Apple 3Q23: By the Numbers, The Most Impressive Apple Number, About That Weak iPad Number
Monday (Aug 7): Apple's 3Q23 in Three Charts
Tuesday (Aug 8): Reading Between the Lines of Apple's 3Q23 Earnings Q&A With Analysts
In today’s update, we will go over Apple’s 3Q23 10-Q. We will then discuss Apple’s latest share buyback and R&D expense trends.
Let’s jump right in.
Apple 3Q23 10-Q Takeaways
Published at the end of FY1Q, 2Q, and 3Q, 10-Q filings provide additional commentary and disclosures regarding a company's business and financial results.
The following items from Apple's 3Q23 10-Q jumped out at me.
Product Details. Apple provided additional commentary behind sales trends for its major product categories.
iPhone. Net sales decreased in 3Q23 due “primarily to lower net sales from certain iPhone models, partially offset by higher net sales of iPhone 14 Pro models.” Based on that wording, higher iPhone ASP was registered in 3Q23 causing iPhone revenue growth to exceed unit sales growth. My model has iPhone ASP up 4% while unit sales were down 6%.
Services. Net sales increased in 3Q23 due “primarily to higher net sales from advertising, cloud services, and the App Store.” Last quarter, the ordering was cloud services, music and advertising. Advertising includes licensing revenue. App Store revenue was likely up a few percentage points year-over-year.
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