Apple reports record revenue of $83B amid high inflation

Apple (AAPL) released its Q3 earnings on Thursday, beating analysts' expectations with record revenue of $83 billion despite fears of rising inflation.

Here are the most important numbers from the report, and how they compare to Wall Street's expectations, as compiled by Bloomberg.

Revenue: $83 billion versus $82.7 billion expected

Earnings per share: $1.20 versus $1.16 expected

iPhone revenue: $40.7 billion versus $38.9 billion expected

iPad revenue: $7.22 billion billion versus $6.9 billion expected

Mac revenue: $7.4 billion billion versus $8.4 billion expected

Wearables revenue: $8.1 billion versus $8.8 billion expected

Services revenue: $19.6 billion billion versus $19.7 billion expected

Apple's stock was up more than 3% after the report.

“Our June quarter results continued to demonstrate our ability to manage our business effectively despite the challenging operating environment. We set a June quarter revenue record and our installed base of active devices reached an all-time high in every geographic segment and product category,” Apple CFO Luca Maestri said in a statement.

Despite the record revenue, Apple reported net income fell 10.5% year-over-year

Apple is contending with a number of problems including rising inflation hitting consumers and COVID lockdowns in China hitting sales and production in the country.

The company's market cap has also suffered amid the larger drop off in tech, falling below the $3 trillion market to $2.5 trillion.

Apple CEO Tim Cook. (Photo by Kevin Dietsch/Getty Images)But according to Morgan Stanley, this is all short-term trouble for the iPhone maker. In a note, Erik W. Woodring indicates that Apple’s services business could help push the tech titan’s market cap over the $3 trillion market again.

Services revenue was especially strong in Q3, jumping from $17.5 billion last year to $19.6 billion.

Apple is widely expected to launch its iPhone 14 line along with its Apple Watch Series 8 later this fall. And while that won’t have much impact on the company’s Q4 earnings since the products are announced just a few weeks before the quarter ends, it should boost its Q1 2023 performance.

Apple is also said to be preparing to enter the AR/VR space with its own headset that will likely launch sometime in 2023. That could serve as the next major product for the company and open up broader opportunities for services and content sales.

More from Dan

Microsoft misses on Q4 earnings, cloud business falls short

Amazon, Google, Facebook, and Microsoft earnings: A crucial week for Big Tech

This iOS 16 feature will help you hide your more, err, sensitive, photos

Got a tip? Email Daniel Howley at Follow him on Twitter at here for the latest trending stock tickers of the Yahoo Finance platform

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or Android

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Click Here To Get Funded!