Apple reported revenue records for cloud and payment services as the tech giant prioritized privacy and security through enhanced product offerings for sensitive data protection within iMessage, Apple ID and iCloud.

WHY IT MATTERS: Although Apple saw increases in cloud and payment services, total revenue did fall amid a turbulent macroeconomic environment, supply chains issues and foreign exchange challenges, Chief Executive Tim Cook said during Thursday’s Q1 2023 earnings call.

BY THE NUMBERS: Apple reported in Q1:

• Total revenue fell 5% year over year to $117.2 billion;
• Services revenue, including cloud and payment services, reached $20.8 billion; and
• Total operating expenses increased 12% YoY to $14.3 million.

STATE OF PLAY: Apple stock was up 3% to $155.54 as of 11 a.m. ET Friday following Thursday’s Q1 2023 earnings call. At market close yesterday, stock landed at $150.82 and fell to $148.03 at market open this morning after comments about the unsteady macroeconomy during the earnings call.

NOTEWORTHY: During Q1 Apple introduced Apple Business Connect to enhance business and customer engagement, Cook said on the call.

“This new tool gives business owners even more control over how billions of people see and engage with their products and services every day. Businesses of all sizes can now customize key information for users across Apple Maps, Messages, Wallet, Siri and other apps,” he said.

FLASHBACK: In October, Apple teamed up with Goldman Sachs for savings accounts capabilities and rewards program accessible through Apple Wallet.

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