Why Apple’s Mac revenue this quarter will ‘decline substantially’ year over year

After setting a new all-time quarterly record in fiscal Q422 ended September 24th, Apple’s Mac revenue will decline substantially in the December quarter (fiscal Q123), Apple CFO Luca Maestri explained during Thursday’s conference call with analysts.

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“It was a great quarter for Mac. We achieved an all-time revenue record of $11.5 billion, up 25% year-over-year, despite significant FX headwinds. There were three key items that helped drive this performance,” Maestri said. “First, we benefited from the launch of our new MacBook Air and MacBook Pro powered by the M2 chip. Second, we were able to satisfy pent-up demand that carried forward from the significant supply constraints we faced during the June quarter. Third, as our supply position improved, we were able to fill the channel.”

“Importantly, our investment in the category has attracted both upgraders and customers new to Mac and helped our installed base reach an all-time high,” Maestri said. “In fact, we set a quarterly record for upgraders, while nearly half of customers buying Macs during the quarter were new to the device.”

“Overall, we believe total company year-over-year revenue performance will decelerate during the December quarter as compared to the September quarter for a number of reasons. First, we expect nearly 10 percentage points of negative year-over-year impact from foreign exchange,” Maestri said. “Second, on Mac, in addition to increasing FX headwinds, we have a very challenging compare against last year, which had the benefit of the launch and associated channel fill of our newly redesigned MacBook Pro with M1. Therefore, we expect Mac revenue to decline substantially year-over-year during the December quarter.”

MacDailyNews Note: During the call, Cook also added, “On the Mac, it was the best quarter we’ve ever had in the history of the company. It was helped by the product launch of the MacBook Air with M2. It was helped that in the previous quarter, in the June quarter, if you remember, we lost output from the factory for a significant portion of the quarter. And so we had a backlog exiting our Q3 headed into Q4. We were able to satisfy all of that demand during Q4 and filled the channel for the Mac. And so that led to an incredible Mac quarter.”

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