Apple earned 13% less between October and December and sees its revenue plummet

Manzana had net benefits of $29.998 million between October and December, 13% less than in the same period of the previous yearand saw its revenue decline year-over-year for the first time since 2019.

In its first quarter of 2023 (Apple’s fiscal year begins in October), the Cupertino (California, USA) company recorded 117,154 million dollars, a 5.5% less than the previous year.

The firm’s results with the bitten apple fell short of market expectations and its shares lost more than 3% in trading post-shutdown email on Wall Street.

Context explains the decline somewhat. Apple faced significant supply restrictions in the first quarter of 2023, mainly affecting the iPhone 14 Pro and iPhone 14 Pro Max. Apple was even forced to issue a statement to investors in November, warning that iPhone 14 Pro shipments would be lower than previously expected.

Today’s first quarter 2023 earnings release gives us a closer look at the impact the supply shortage has had on Apple’s performance.

The fall and the current situation

The October-December period is particularly important for Apple because it is the one of the Christmas campaign, but on this occasion the technology company has seen how the sales of its flagship products have been significantly affected.

The iPhone gave Apple revenue of $65.775 million last quarter, down 8.17% from that period a year earlier, while Mac sales fell 28.66% to $7,735 million, and iPad sales fell 29.66 million. %, to 9,396 million.

The rest of the products generated revenue of $13,482 million, down 8.3% year-over-year, while the services business grew, a 6.4%, up to $20,766 million.

By geographical area, the Americas continued to represent the largest part of Apple’s business, with revenues of $49,278 million, followed by Europe and China, but sales declines were recorded in all regions in the last quarter .

In addition to the general economic slowdown, Apple has been feeling the effects of the strength of the dollar and problems with the production of its latest iPhones in China.

“As we continue to navigate a difficult economic environment, we are proud of it have our best line of products and services and, as always, we remain focused on the long term and on leading with our values ​​in everything we do,” Apple CEO Tim Cook said in a statement, highlighting the 2 billion mark as a “stone milestone”. active devices.

Unlike other tech giants, Apple has thus far not announced any reductions in its workforce, which has grown at a slower pace than some of its competitors due to the explosion that the sector has experienced during the pandemic.

The company, Wall Street’s largest by capitalization, has seen its share price fall significantly over the past year, but its shares have recovered about a 20% value so far in 2023.

The sharing of profits

The 5% year-over-year drop in revenue represents the largest quarterly decline in Apple’s revenue since 2016.

Apple no longer reports unit sales for any of its products, instead reporting a breakdown of revenue by product category. Here’s the full breakdown for the first quarter of fiscal 2023, compared to the figures for the first quarter of fiscal 2022.

• iPhone: $65.78B (vs. $71.63B)
• Mac: $7.74B (vs. $10.85B)
• iPad: $9.4B (vs. $7.25B)
• Wearables, Home & Accessories: $13.48B (vs. $14.70B)
• Services: $20.78B (vs. $19.5B)