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Yahoo Finance’s Jared Blikre breaks down the latest Apple earnings report.
ADAM SHAPIRO: Emily, the expectations for Apple, Tim Cook, and company, I mean, at one point, $3 trillion market cap. What's next for them?
EMILY MCCORMICK: Well, Adam, I think that is the question here. And of course, if we look back at what actually happened in this latest quarter for Apple, recall that there had been reports of supply chain disruptions. There had been some reporting coming out from Bloomberg that Apple had actually told its suppliers that it was planning on cutting its production for Apple iPhone units for the quarter-- for the holidays, rather, because of, again, some lessened demand here and, again, because of the upgrade cycle that we're likely to get at the end of this year as well.
So I think there are going to be a lot of questions for Apple about what kind of demand that they were actually seeing for their latest hardware. We got a number of updates for their other hardware products as well if we think about the new chips that have been put into their MacBook products, the new MacBook Pro. So I think definitely going to be a lot of focus on the hardware side of the business as usual. Of course, Apple does have its expanding suite of services, but a lot of questions still about the hardware specifically.
ADAM SHAPIRO: Jared, Apple's breaking some records. Tell us about the earnings, which have crossed.
JARED BLIKRE: I'll tell you what, the revenue-- how hot is this? $123.95 billion, that's a cool $4 billion higher than the estimate of $119.05 billion. Also up 11% year over year. Now EPS was also a big beat, coming in at $2.10 versus the estimate of $1.90. And when you break out the revenue by product, here we go, products revenue, $104.43 billion. That's up 9%, handily beating the estimate of $99.3 billion. That's $5 billion higher.
iPhone revenue, 71.6-- nice beat there. Mac revenue, $10.85 billion-- smaller beat there. iPad revenue, $7.25 billion. This is one of the only numbers I'm seeing coming up short. It is lower than the Wall Street estimate of $8.11 billion. That's down 14% year over year. So iPad sales maybe flagging a little bit.
But wearables, home, and accessories, that came in at $14.7 billion. And that is slightly beating the Wall Street estimate of $14.16 billion. Services revenue, a growing percentage of its revenue, is $19.52 billion, up 24% year over year, handily beating the estimate of $18.64 billion by about $0.9 billion. Greater China revenue, $25.78 billion. That is up 21% year over year.
Another place where they fell a little bit short was cash and cash equivalents. That came in at $37.12 billion. The Street was looking for $47.59 billion. So spending that cash, a little bit more cash than was expected. Gross margin another number here, $54.24 billion. That is up 22% year over year. So really knocking it out of the park on a lot of these metrics here. The stock is up 2% in afterhours trading.
And let's take a look at some of the charts here. Year to date, we know it's fallen off a bit with most of the other mega caps. It is down 10%. Let's take a look at a one-year chart. And you can see it's holding onto gains of about 12%. But it's been kind of rocky for a lot of these stocks over the last month. We'll see if investors can run with this news tomorrow.
EMILY MCCORMICK: All right, Yahoo Finance's Jared Blikre, thank you so much for breaking that down for us.