Neil Cybart Neil Cybart

Initial Impression From Apple’s 4Q23 Earnings, Key Numbers From Apple 4Q23, About Apple’s 1Q24 Guidance

Hello everyone. Welcome to a special Friday edition of the Daily Update. We will begin our Apple’s earnings review. The discussion will be purposely kept broad for now. Next week, we will dive into some of the nitty gritty. Let’s jump right in.


Initial Impression From Apple’s 4Q23 Earnings

Apple’s financial performance is trending very close to our existing assumptions. Underlying demand for Apple hardware appears to be down low single digits driven by slowing upgrading trends, especially with the iPad, Mac, and AirPods. Mostly offsetting HW weakness, Services revenue momentum continues to build with growth re-accelerating despite Apple working with a much larger base.

While Apple’s 1Q24 guidance may have disappointed some, when excluding one-time factors including calendar year differences and COVID supply issues, Apple guided to roughly flat revenue growth. Meanwhile, Apple’s 45% to 46% gross margin guidance was stellar. The Apple story remains firmly intact heading into 2024 and Apple’s most important product launch in nearly a decade with Vision Pro.


Key Numbers From Apple 4Q23

Here are Apple’s reported 4Q23 results versus my expectations with brief commentary for each item.

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