Apple’s sales fell 5% and fell in all regions of the world in the last quarter. Apple’s earnings fell short of Wall Street expectations for the first time since 2016, dragged down by iPhone sales falling for the first time since 2020.
The Apple sales fell 5% to $117.2 billion and declined in all regions of the world in the last quarter. Analysts had expected sales of $121.1 billion and earnings of $1.94 per share, according to trade press.
The sales of each product category fell, except services and sale of iPad. In an interview, however, Tim Cook told Reuters that the production disruptions that affected Apple’s key quarter were now over.
An almost historic drop in sales for Apple
During its first fiscal quarter ending December 31, Apple faced a flurry of challenges. Among them, supply chain pressures related to COVID-19 at a production facility in Zhengzhou, China, that slowed production of the iPhone 14 Pro and Pro Max, two premium-priced models that would traditionally help boost Apple’s margins. In early January, Apple shares fell more than 3%, sending the famed iPhone maker’s market capitalization back below $2 billion for the first time since last May.
Tim Cook said lockdowns in China created a double challenge, where supply and demand were constrained, with increased sales in China down 7% to $23.9 billion. the US dollar price also hurt Apple, which derives more than half of its sales outside the United States. Apple had warned investors that such currency issues would lead to a 10% drop in sales, but said on Thursday the actual effect was 8%. Apple expects a 5% impact on exchange rates in the second fiscal quarter.
In addition to iPhone supply chain issues, Wall Street analysts expected iPhone sales to fall this year. Apple said iPhone sales were $65.8 billion, down 8% from the previous year. It’s also the first decline since 2020. For the quarter just ended, Apple’s earnings fell short of Wall Street expectations. for the first time since 2016.
Source : New York Times
