Apples three year run is over with iPhone sales down 8
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Apple’s three-year run is over, with iPhone sales down 8% and Mac sales down nearly 30%

Apple released a report for the first quarter of fiscal 2023, which ended December 31 for the company. Revenue fell 5%, Apple’s first revenue decline since Q2 2019. One of the main reasons is the decline in iPhone sales due to quarantine measures in China and broader macroeconomic factors. The company’s shares fell 4%.

For the most recent quarter, Apple’s revenue was $117.2 billion, down 5.49% from the prior-year period. It’s also well below analysts’ expectations of $121.1 billion in revenue. Earnings per share were $1.88, down 10.9% year over year.

In the first quarter of fiscal 2023, Apple faced a wave of problems. Chief among them were issues with the release of the iPhone 14 Pro and Pro Max caused by COVID-19 lockdowns and related unrest at the largest iPhone assembly plant in Zhengzhou, China. In an interview with Reuters, Apple CEO Tim Cook said production disruptions “lasted most of December“, but “Now production is back where we want it to be“. Cook said that the lockdowns in China caused a double whammy that not only restricted supply but also demand – sales in China fell 7% to $23.9 billion, wearable devices like the Apple Watch .

Apple said in a report that iPhone sales generated $65.8 billion in revenue last quarter, down 8% year-on-year and below analysts’ estimates of $68.3 billion. Sales of wearables and other Apple devices fell 8.3% year over year to $13.48 billion last quarter, also below market expectations of $15.23 billion.

Mac computer sales fell the most, though — that part of the business brought in just $7.74 billion, down 28.66% year over year and also significantly below analysts’ forecasts of $9.6 billion Dollars with the ongoing pandemic and mass remote working, as well as the release of new MacBook Pros with proprietary Apple processors.

The only hardware segment to show growth in the most recent quarter was the iPad – its revenue immediately jumped 29.66% to $9.4 billion, beating analysts’ forecast of $7.76 billion, which is due to the release of new models and their lack of a shortage that hampered the sale of Apple tablets a year earlier.

Apple Services, which includes Apple Music and Apple TV+ audio and video streaming services, the App Store, Apple Pay, iCloud and other services, grew 6% year over year to $20.8 billion, slightly better than expected by analysts to 20.7 billion US dollars. Cloud services, payments including Apple Pay and Apple Card, and music were found to be strong areas of Apple services. Cook added that Apple employees are now beta testing the “buy now, pay later” payment plan that it plans to become at its service.

Apple investors are waiting to see if the company will break into new market segments this year. There are high hopes for Apple’s plans to release a flagship mixed reality headset this year, which could cost around $3,000. There are also rumors that the company is working on a cheaper AR/VR device.

In conclusion, the company was found to be slowing hiring and cutting costs. Unlike many tech companies, Apple hasn’t announced any massive layoffs. “We also know that the environment in which we find ourselves is complex. And this is how we reduce costs. We’re cutting back on hiring, we’re very prudent and balanced about the people we hire‘ said Cook.

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Johnson Smith

Johnson Smith is interested in Home Theater & Audio, Smart Tech, Google News & Products, How To, Apple News & Products, Cell Phones, Automotive Technology.

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