HONG KONG, Nov 16, 2023 - (JCN Newswire) - Apple recently announced its financial results for the fourth quarter of the 2023 fiscal year, revealing impressive figures. The Company experienced an 11% increase in net profit to approximately $23 billion despite a 1% year-on-year decline in total revenue to $89.5 billion. iPhone sales accounted for around 50% of the total revenue, reaching $43.8 billion, representing a year-on-year growth of about 3%. Additionally, service revenue reached a new record high at approximately $22.3 billion, showing a year-on-year growth of about 16%.
While Apple's revenue in Greater China declined by 2.5% due to exchange rate fluctuations, Apple CEO Tim Cook highlighted that iPhone revenue in mainland China set a September quarter record. Revenue actually increased when excluding the impact of exchange rate fluctuations.
Analyst Erik Woodring from Morgan Stanley noted that the new iPhone 15 Pro and iPhone 15 Pro Max are in high demand, and Apple's CFO Luca expects supply and demand to balance out in the first quarter of 2024. Luca stated that Apple is "working hard to fulfill orders". Analyst Amit Daryanani from Evercore ISI expressed interest in Apple's upcoming head-mounted display, Vision Pro, to which Cook replied that the product has gained significant market interest, research and development expenses have increased, and there are highly anticipated products with better user experiences on the horizon.
Cook visited Luxshare Precision's factory in Zhejiang on October 18th, just before the release of the financial report. He was accompanied by Luxshare Precision's Chairwoman, Wang Laichun. Cook emphasized Apple's commitment to advancing green and intelligent manufacturing in China, enriching the developer ecosystem, and growing together with industry supply chain partners. This visit was seen as a friendly gesture towards the Chinese market, as Chinese suppliers remain an integral part of Apple's production process. Luxshare Precision, an important member of Apple's supply chain, is responsible for the development and manufacturing of iPhone, Apple Watch, AirPods and Vision Pro, providing integrated solutions ranging from diversified components and modules to complete system assembly.
Luxshare Precision has been collaborating with Apple for over a decade and actively participates in Apple's clean energy program, which aims to achieve carbon neutrality for Apple's production by 2030. Wang Laichun revealed that Luxshare Precision is preparing for the release of the Apple Vision Pro headset early next year. Analyst Ming-Chi Kuo from TF International Securities previously estimated that Vision Pro's shipment volume in 2024 would be between 400,000 and 600,000 units at most. The product has received positive feedback from multiple developers and has a promising market outlook.
Several suppliers have made significant progress through diversified strategies, benefiting from the launch of new Apple products. Luxshare Precision recently released its third-quarter report, achieving a total revenue of RMB155.875 billion in the first three quarters of 2023, a year-on-year increase of 7.31%. The net profit in Q3 reached RMB3.018 billion, a year-on-year increase of 15.37%, surpassing previous performance. Analysts predict that Luxshare Precision's headset assembly business will lead the next wave of consumer electronics innovation, bringing potential and value to the XR industry chain. In addition, BYD Electronics, which expanded Apple's product line through a major acquisition, achieved revenue of RMB35.96 billion in Q3, a year-on-year increase of 31%. BYD Electronics is expected to further increase profits in 2024, benefiting from the continued growth in Apple, automotive and household energy storage businesses.
Goldman Sachs recently raised Apple's target price from $213 to $227 based on the belief that Apple's Q4 earnings exceeded expectations. The iPhone's historic high revenue in the Chinese market during this quarter contributed to the positive performance. Cook holds an optimistic outlook for the Chinese market and combined with the impressive performance of major supply chain companies in Q3, it is expected that Apple will bring new surprises to the market in 2024.
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