Apple was the last of the big five U.S. tech companies to report its earnings for the three months ended September 2023 on Thursday. And like the other four GAFAM companies before it, Apple reported a record third quarter profit, despite falling short of expectation in terms of sales, as it and other tech giants are bouncing back from their post-pandemic slumps.
While the company's net net sales dipped 1 percent to $89.5 billion in the September quarter, net income was up 11 percent. Apple shares, which had been up 37 percent in the year to-date, slipped 3.4 percent after-hours following the release as the important holiday quarter guidance disappointed. The company said they expected a December quarter similar to 2022, while observers had hoped for a forecast of growth over last year.
Out of the entire GAFAM group, namely Google, Apple, Facebook, Amazon and Microsoft, several companies have recovered from their post-Covid slumps. During the pandemic, "Big Tech" had profited from its stimulating effects on online advertising, e-commerce and consumer spending. While Alphabet and Microsoft saw profits fall somewhat in 2022 compared to 2021, Facebook saw the biggest decrease that year - with a September quarter net income of just $4.4 billion - compared to $9.2 billion in 2021 and below 2019's Q3. This past quarter, the company managed to break its Q3 record from the pandemic, bringing in $11.6 billion.
Apple's income increased majorly in the pandemic but didn't see as many losses in 2022. In 2023, the company managed to become even more profitable. The profitability crisis of Amazon, on the other hand, started as early as 2021. The income of the company started to swing majorly as new CEO Andy Jassy began a cost-cutting regimen that ultimately paid off when the company grew its income in 2023, most recently to $9.9 billion - a Q3 record and the second-best result ever.
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