MacRumors

During today's earnings call covering the fourth fiscal quarter of 2022, Apple CEO Tim Cook said that Apple has been constrained on the iPhone 14 Pro and Pro Max "from the beginning," which has had an impact on sales.

Cook went on to say that Apple is "working very hard to fulfill demand" and that customer demand was "strong" and ultimately better than Apple anticipated. He expects that supplies will continue to be constrained "for a little while."

Apple was happy with iPhone sales during the quarter, with revenue up by 10 percent. In fiscal 2021, iPhone revenue grew by 39 percent, which made for a "tough compare" year over year. "We feel very good about how we performed in Q4," said Cook.

At the current time, many iPhone 14 Pro and Pro Max models are not delivering until November in the United States when ordered from Apple's online store.

The 14 Pro and Pro Max have been especially appealing this year as they offer a new Dynamic Island, A16 chip, and camera improvements that are not available in the standard iPhone 14 models. Rumors have suggested that the iPhone 14 has not sold as well, with customers particularly uninterested in the new 6.7-inch iPhone 14 Plus.

Apple saw a sharp decline in iPad sales in fiscal 2022, according to earnings results for the fourth quarter that were shared today. iPads brought in $29.2 billion in 2022, down from the $31.8 billion in sales Apple saw in 2021.

For most of 2022, iPads saw little attention and supplies were notably constrained. Apple refreshed the iPad Air in March, but did not introduce a new design, focusing primarily on the addition of an M1 chip.

No other iPads were refreshed during the fiscal 2022 year, and while the iPad Pro and ‌iPad‌ just received updates, those sales will be counted in the first quarter of fiscal 2023 due to the timing of the launch. Apple has said multiple times this year that it has faced supply issues with the ‌iPad‌, which may have impacted sales.

In the fourth quarter of 2022, iPads brought in $7.17 billion in revenue, down from $8.25 billion in the year-ago quarter. The year over year comparison is difficult as Apple introduced new iPads during the fourth quarter last year.

While ‌iPad‌ sales faltered in fiscal 2022, Mac sales were up even though there have been a limited number of refreshes. Apple revamped the MacBook Air and 13-inch MacBook Pro models in June, but we are still waiting on refreshes of other models like the Mac mini and the 14 and 16-inch ‌MacBook Pro‌.

Apple also saw supply constraints with Macs throughout the course of the year, but interest in the ‌M1‌, M1 Pro, M1 Max, M1 Ultra, and M2 chips has resulted in steady sales. Mac revenue was at $11.5 billion in the fourth quarter of 2022, up $2.5 billion year over year. In fiscal 2022, Macs earned a total of $40.1 billion, up $5 billion from the $35 billion that Macs earned in fiscal 2021. The Mac is attracting new customers, and in Q4 2022, half of Mac buyers were new to the product line.

During today's earnings call, Apple CFO Luca Maestri said that Mac revenue will decline substantially in the holiday quarter on a year over year basis due to the Mac launches that came last year.

Apple's services category, which encompasses the App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, Apple Fitness+, iCloud+, and more, earned a total of $78 billion in revenue in fiscal 2022, according to today's earnings results for the fourth fiscal quarter of the year.

The services category earned $19 billion during the quarter, up almost a billion from the $18 billion earned in the year-ago quarter. Services overall earned $10 billion more in 2022 than in 2021, with Apple seeing strong growth. Services subscribers have increased significantly, with Apple reporting more than 900 million paying subscribers, up 155 million since last year.

Apple earlier this week said that it is going to increase the price of ‌Apple TV‌+ and ‌Apple Music‌, with individual ‌Apple Music‌ subscriptions increasing by $1 and ‌Apple TV‌+ subscriptions increasing by $2.

Apple One Bundles have also increased in price by $2 to $3, with Apple blaming the ‌Apple Music‌ price hikes on licensing fees and the ‌Apple TV‌+ increase on its growing catalog of content.

Apple today announced financial results for the fourth fiscal quarter of 2022, which corresponds to the third calendar quarter of the year.

For the quarter, Apple posted revenue of $90.1 billion and net quarterly profit of $20.7 billion, or $1.29 per diluted share, compared to revenue of $83.4 billion and net quarterly profit of $20.6 billion, or $1.24 per diluted share, in the year-ago quarter.

Gross margin for the quarter was 42.3 percent, compared to 42.2 percent in the year-ago quarter. Apple also declared a quarterly dividend payment of $0.23 per share, payable on November 10 to shareholders of record as of November 7.

For the full fiscal year, Apple set new company records with $394.3 billion in sales and $99.8 billion in net income, up from $365.8 billion in sales and $94.7 billion in net income for fiscal 2021.

"This quarter's results reflect Apple's commitment to our customers, to the pursuit of innovation, and to leaving the world better than we found it," said Tim Cook, Apple's CEO. "As we head into the holiday season with our most powerful lineup ever, we are leading with our values in every action we take and every decision we make. We are deeply committed to protecting the environment, to securing user privacy, to strengthening accessibility, and to creating products and services that can unlock humanity's full creative potential."

As has been the case for over two years now, Apple is once again not issuing guidance for the current quarter ending in December.

Apple will provide live streaming of its fiscal Q4 2022 financial results conference call at 2:00 pm Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference call recap ahead...

➜ Click here to read rest of article...

Apple today introduced Apple Security Research, a new website that is dedicated to improving the methods available to security researchers for reporting issues to Apple. The site offers up tools for sending Apple security reports, getting real-time status updates, and communicating with Apple engineers.

In addition to housing information on the Apple Security Bounty program, the website is a blog that will allow the Apple engineering teams to share the latest advances in Apple security. The first post delves into XNU memory safety.

Apple today also shared progress that it has made with the Apple Security Bounty program. In the last two and a half years, Apple has awarded close to $20 million in payments to researchers. Average payouts are around $40,000 in the Product category, and Apple has paid 20 separate rewards over $100,000 for high-impact issues.

Apple says that it is now responding to issues more quickly than before, and has made it easier to report issues and communicate with Apple's teams through the launch of the new website. All bug report status changes are reflected in a new tracker available on the website, which also makes it easier for Apple to collect more information on bugs.

Transparency has been improved as well, with the site offering detailed Apple Security Bounty information and evaluation criteria so researchers have a better idea of what will earn a reward.

Today through November 30, 2022, Apple is accepting applications for the 2023 Apple Security Research Device Program, which provides qualified individuals with an iPhone that is designed specifically to make finding bugs easier.

Apple today seeded the first beta of macOS Ventura 13.1 to its public beta testing group, allowing non-developers to try out the new features ahead of the software's release. The public beta comes one day after Apple provided the beta to developers.

Public beta testers can download the macOS 13.1 Ventura update from the Software Update section of the System Preferences app after installing the proper profile from Apple's beta software website.

macOS Ventura 13.1 introduces the Freeform app, which Apple has designed for creative collaboration. The app can be used for brainstorming, planning out ideas, jotting down notes, and more. Users can insert drawings, sticky notes, shapes, text boxes, photos, videos, PDFs, links, and other documents, with Freeform serving as a blank canvas.

Freeform "boards" can be shared with other people and discussed over FaceTime, with updates from all participants synced to everyone in real-time.

The update also introduces support for an updated Home app architecture that improves performance for smart home devices.

Apple today seeded the first betas of upcoming iOS 16.2 and iPadOS 16.2 updates to public beta testers, opening up the software to the general public. Today's beta comes one day after Apple provided the beta to developers.

Public beta testers who have signed up for Apple's free beta testing program can download the ‌iOS and iPadOS 16.‌2 betas over the air after installing the proper certificate from the Public Beta website.

iOS 16.2 and iPadOS 16.2 introduce the Freeform app, which can be used for jotting down notes, sketching, drawing, brainstorming ideas, creating mood boards, and more. Multiple people can work on the same Freeform board, with changes synced for all participants in real time.

For the iPad, the update brings external display support to the Stage Manager multitasking feature, allowing up to eight apps to be used at once. External display support is available for the M1 and M2 ‌iPad‌ models.

There is a new Home app architecture coming in iOS and iPadOS 16.2, which Apple says is designed to bring faster, more reliable performance, especially in homes with a lot of smart home accessories. The new architecture requires the HomePod 16.2 beta software, and it causes the Home app not to work with devices updated to iOS 16.2, iPadOS 16.2, or macOS Ventura 13.1.

Unintentional Emergency SOS calls can be reported to Apple in iOS 16.2, and there are a few other minor changes that can be found in our iOS 16.2 feature guide.

Apple today released iOS 15.7.1 and iPadOS 15.7.1, operating system updates that are designed for older iPhones and iPads unable to run iOS 16 and iPadOS 16. The updates are also available to those who have chosen not to update to iOS 16 at this time.

The ‌iOS and iPadOS 15.7.1‌ updates can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update.

iOS 15.7.1's launch was delayed because during the beta testing period, it was found that the update was breaking Face ID for some people. Apple has presumably fixed the Face ID issue before releasing the new software.

According to Apple's release notes, the update includes important security fixes and is recommended for all users. iOS 15.7.1 addresses a long list of vulnerabilities, including a kernel vulnerability that Apple says may have been actively exploited, so all users should update as soon as possible. iOS 16 users received these fixes in the iOS 16.1 update.

Users report that their iPhone periodically and sometimes randomly disconnects from Wi-Fi after updating to iOS 16.1, according to reports across Reddit, Twitter (1,2,3,4), and the Apple Support community forums.

Based on what users are sharing, they say their iPhones are periodically and sometimes randomly disconnecting throughout their day, despite no changes in their environment. Other users say their iPhones will sometimes disconnect from Wi-Fi when they're left stationary on standby, such as overnight. Some users have attempted resetting all network settings on their iPhones, but the reset appears ineffective.

iOS 16.1 was released last week and is the first major update to the iOS 16 operating system since its release in September. iOS 16.1 brings multiple new features to iPhone users, including Live Activities.

Apple this week began beta testing iOS 16.2, the next major update to the operating system expected to be released later in November. It's unclear if Apple plans to release an interim update to potentially address the Wi-Fi bug and other issues being experienced by users.

Apple is set to report its earnings results for the fourth quarter of its 2022 fiscal year today at 1:30 p.m. Pacific Time. Apple CEO Tim Cook and Apple CFO Luca Maestri will discuss the results on a conference call for investors at 2:00 p.m. Pacific Time.

Keep reading for some key things to know about Apple's fourth quarter, including analyst expectations for revenue and more.

New Products During Quarter

Apple's fourth quarter ran from June 26 through September 24, according to the company's 2022 fiscal calendar. Apple launched or started accepting pre-orders for several new products during this period, including new iPhones, Apple Watches, and more:

• MacBook Air with M2 chip
• iPhone 14
• iPhone 14 Plus (pre-orders only)
• iPhone 14 Pro
• iPhone 14 Pro Max
• Apple Watch SE (second generation)
• Apple Watch Series 8
• Apple Watch Ultra
• AirPods Pro (second generation)

Record September Quarter Expected

On average, Apple is estimated to report revenue of $88.9 billion for the quarter, according to Yahoo Finance. This would be a September quarter revenue record for Apple and 6.5% higher than the $83.4 billion that Apple reported in the year-ago quarter.

Conference Call

Apple's CEO Tim Cook and CFO Luca Maestri will hold a conference call at 2:00 p.m. Pacific Time today to discuss the company's fourth quarter earnings results. The call should be around one hour long and will include a Q&A segment with analysts.

A live audio stream of the conference call will be available on Apple's Investor Relations page, and a recording will be available at a later time for replay.

Investors will be listening for any potential commentary surrounding the economy amid higher-than-average inflation and recession concerns around the world.

What's Next

Apple's first quarter of fiscal 2023 began September 25 and runs through December 31. The quarter has already included the launch of new iPad Pro models with the M2 chip and the 10th-generation iPad, along with pre-orders for a new Apple TV.

Apple has not provided guidance since the start of the COVID-19 pandemic, but analysts expect Apple to post single-digit year-over-year growth in Q1 2023.

AAPL is currently trading at around $147, down around 20% from a 52-week high of $182.94.

The 2021 Apple TV 4K has been seeing solid discounts ever since Apple announced the new model earlier this month. Today, the 64GB 2021 Apple TV 4K has dropped to a new all-time low of $109.99, down from an original price of $199.00.

Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running.

Apple's new 2022 Apple TV 4K models are launching at low price points: $129 for 64GB and $149 for 128GB. With these new discounts on 2021 models, it's a bit easier to recommend an older generation model to anyone who is more inclined to save money over wanting the newest model.

In addition to the 64GB model, the 32GB 2021 Apple TV 4K is on sale for $99.99, down from $179.00. This is also an all-time low price, and both models are in stock and ready to ship from Amazon today.

Those interested in the new 2022 model can still save a bit of money with a pre-order discount on Amazon. If you're on the hunt for more discounts, be sure to visit our Apple Deals roundup where we recap the best Apple-related bargains of the past week.

Update October 26 3:31 p.m.: In a statement shared with MacRumors today, Apple said it has paused gambling ads in App Store app pages, with no further details provided:

We have paused ads related to gambling and a few other categories on App Store product pages.

Original story from October 25 follows.

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Apple today rolled out new ad placements in the App Store on the iPhone, allowing developers to advertise their apps in more places, including the main Today tab and in the "You Might Also Like" section at the bottom of individual app listings.

Just hours later, several prominent developers have complained about distasteful ads for gambling apps appearing in their own App Store listings outside of their control, including Marco Arment, Simon Støvring, and others. The issue was also highlighted in a tweet shared by MacStories editor-in-chief Federico Viticci.

"Now my app's product page shows gambling ads, which I'm really not OK with," tweeted Arment. "Apple shouldn't be OK with it, either."

As noted by Arment, Apple provides advertisers with the choice to have their ad shown in app categories different than their own app's category, allowing ads for gambling ads to appear in listings for unrelated apps like the podcast app Overcast.

The presence of gambling ads in the App Store as a whole has prompted some criticism, with some accusing Apple of being greedy and moving away from policies that the company upheld under former CEO Steve Jobs. Apple earns revenue from both the ad placements and its 15% to 30% cut of in-app purchases in gambling apps.

Beyond upsetting some developers, Apple allowing apps to run ads in other apps' listings has already led to the company facing accusations of anticompetitive behavior. In a tweet last week, legal expert Florian Mueller argued the ads are "another means of increasing the effective app tax rate, forcing developers to buy ads on their own app pages in order to avoid that others steer customers away from there."

In August, Bloomberg's Mark Gurman said Apple wanted to nearly triple its current advertising revenue to at least $10 billion per year in the future. Gurman said keyword-based search result ads are coming to the Apple Maps app starting next year.

We've reached out to Apple for comment and asked if the company will consider tightening its rules surrounding the ads. We'll update this story if we hear back.

Today is the official launch day for the 10th-generation iPad and the M2 iPad Pro models that Apple announced last week, and we picked up one of each of the new tablets to give MacRumors readers a look at what's new.

The updated 11 and 12.9-inch ‌iPad Pro‌ models are not particularly exciting, as Apple has not introduced any design changes or major feature updates. We did not get the rumored MagSafe charging, the reverse wireless charging, or any other notable additions.

Apple added an upgraded ‌M2‌ chip, which is the same chip that's in the MacBook Air. It brings up to a 15 percent improvement in CPU speeds and up to a 35 percent improvement in GPU performance compared to the M1, but the ‌M1‌ was already pretty robust, so casual users are not going to notice the upgrade.

There is a new Apple Pencil hover feature that allows the display to detect the ‌Apple Pencil‌ when it's 12mm away from the screen for new sketching, drawing, and interface functionality, plus there's WiFi 6E support for faster connection speeds, but that's it. There's no reason to upgrade if you have an ‌M1‌ ‌iPad Pro‌, and it's even a questionable upgrade if you have an A12Z or A12X model.

The low-cost ‌iPad‌ got a much bigger update, but it's unfortunately not as low-cost anymore, with pricing that starts at $449 instead of $329. It no longer has thick bezels and a Touch ID Home button, with Apple instead transitioning to the same ‌Touch ID‌ power button used for the iPad Air and the iPad mini.

There is more available display area (it now measures in at 10.9 inches) and a range of bright colors to choose from, plus it is equipped with a faster A14 Bionic chip. There's an improved 12-megapixel rear camera and it is the first ‌iPad‌ with a landscape front-facing camera, which is useful if you use it in landscape mode with a keyboard.

The low-cost ‌iPad‌ has also gained USB-C and 5G connectivity, plus Apple designed a Magic Keyboard Folio for it, so it's actually quite a bit like the ‌iPad Air‌. In fact, Apple has made the ‌iPad‌ line a bit confusing with the addition of the ‌iPad‌ because it is so similar to the ‌iPad Air‌. It's essentially an ‌iPad Air‌ without an M-series chip.

If you have a prior-generation low-cost ‌iPad‌, it is without a doubt a notable upgrade, and it continues to be $150 cheaper than the ‌iPad Air‌.

What do you think of the new ‌M2‌ ‌iPad Pro‌ and the 10th-generation ‌iPad‌? Let us know in the comments below.

With the iOS 16.2 beta, Apple has introduced a new Sleep widget that can be added to the new iOS 16 Lock Screen alongside other widgets.

The Sleep widget is the only new widget addition in iOS 16.2, and it draws from data stored in the Health app and collected by the Apple Watch or other sleep tracking devices. It provides information such as time spent in bed and sleep quality, with three variants available.

A simple one tile widget shows the amount of time that you spent in bed, and two multi-tile options display either a bar chart that shows sleep quality or a larger widget that shows time in bed along with a visual representation. Tapping on the widget opens up the Sleep section of the Health app.

On iPhone 14 Pro and Pro Max models, the Sleep widget is collapsed down when the display is dimmed for the always-on display mode, with a series of lines available for the two tile widget and a bed icon available for the single tile widget.

iOS 16.2 is limited to developers at the current time, with Apple having provided one beta so far. The update is likely to expand to public beta testers in the near future.

The new iPad Pro models announced last week are the first Apple devices to support Wi-Fi 6E, which uses the 6GHz band to enable faster and more reliable Wi-Fi connectivity. In a new support document, Apple explains how the feature works.

To create a Wi-Fi 6E network, Apple says you need a Wi-Fi 6E router that also has its 2.4GHz or 5GHz bands enabled. For the best Wi-Fi performance, Apple recommends using a single network name across the router's 2.4GHz, 5GHz, and 6GHz bands. Otherwise, the iPad Pro identifies the network as having "limited compatibility," with Apple warning that the "overall experience with some activities over the network might not be as expected."

If you experience any issues with a Wi-Fi 6E network, Apple says you can turn off Wi-Fi 6E mode for that network, and the iPad Pro will no longer use that network's 6GHz band. To do so, open the Settings app, tap on Wi-Fi, tap on the name of the network you are connected to, tap on Wi-Fi 6E Mode and toggle it off. However, Apple says this setting appears only for Wi-Fi 6E networks that use a single network name for all bands.

The new iPad Pro was released today and also features the M2 chip, new hover functionality for the Apple Pencil, ProRes video recording, and Bluetooth 5.3.

Apple today introduced an overhauled design for the iCloud.com website, which is available in a beta capacity on Apple's test site, beta.icloud.com.

The updated design is a notable departure from the current iCloud design, showing full tiles with previews for Photos, Mail, iCloud Drive, Notes, and more, on a customizable Home page.

You can choose the apps that you use most for the ‌iCloud‌ Home page, selecting from all of the above listed apps as well as apps that include Pages, Numbers, Keynote, and Calendar.

Apple slightly redesigned some of the apps, tweaking toolbars and button locations for a more streamlined experience.

Anyone can see the new ‌iCloud‌ interface by visiting the beta site. It will be in testing for some time, and after Apple works out any bugs with the design, the new look is likely to expand to the main ‌iCloud‌ website.

(Thanks, Tim!)

Apple's software engineering chief Craig Federighi and marketing chief Greg Joswiak spoke with tech columnist Joanna Stern at The Wall Street Journal's Tech Live event in California on Tuesday. A full video of the interview is now available on YouTube.

Notable topics discussed included Apple admitting that it will have to comply with the EU's law requiring the iPhone to switch to USB-C, the lack of iMessage on Android, the lack of a built-in Calculator app on the iPad, App Tracking Transparency, privacy, working from home vs. the office, and more. The interview was also live-streamed on Twitter.

Read our previous coverage for a recap of notable comments from the interview.

Apple is developing a larger 16-inch iPad that it hopes to release in the fourth quarter of 2023, according to a report today from The Information's Wayne Ma. This would be the largest-ever iPad model, topping the 12.9-inch iPad Pro.

"A 16-inch iPad would likely be geared toward creative professionals such as graphic artists and designers who prefer a larger screen," the report says. No additional details were provided about the prospective device, which would have the same screen size as a 16-inch MacBook Pro, providing users with a significantly larger canvas to work with.

Bloomberg's Mark Gurman last year claimed that Apple was exploring the idea of larger iPads that could further "blur the lines" between a tablet and a laptop.

Earlier this year, oft-accurate display industry analyst Ross Young claimed that Apple was also developing a larger 14-inch iPad Pro with a mini-LED display. Taking both of these rumors into account, it is possible that Apple is planning to release both 14-inch and 16-inch iPad Pro models next year, which would mirror the 14-inch and 16-inch MacBook Pro.

Apple just updated the iPad Pro with the M2 chip, Wi-Fi 6E, an Apple Pencil hover feature, ProRes video recording support, and a few other minor improvements last week.