Apple reported its first quarterly revenue decline since 2019 on Thursday, reporting $117.2 billion, down 5% year-over-year. Mac sales were particularly hard hit, down about 30% year-over-year. iPhone sales also fell about 8%.
Apple was expected to post a significant reduction in revenue for the quarter, which saw several factors weigh on the company’s sales. Most notably, there were weeks-long issues with production of the iPhone 14 Pro and iPhone 14 Pro Max that spanned the massive Black Friday rush and made the smartphones nearly impossible to sell. find.
Additionally, Tim Cook blamed the strength of the US dollar and the “challenging macroeconomic environment” as contributing factors. Indeed, the prices of many Apple products have increased significantly outside the United States, making them less affordable.
There were few bright spots for the company in the holiday quarter, but iPad had its best quarters since 2014 and the services crossed the $20 billion mark for the first time:
- iPhone: $65.8 billion (down 8%)
- Mac: $7.7 billion (down 29%)
- iPads: $9.4 (up to 30%)
- Wearables: $13.5 billion (down 8%)
- Services: $20.8 billion (up 6%)
Cook also announced that Apple had reached 2 billion active devices for the first time. It’s worth noting that more than half of iPad customers and two-thirds of Apple Watch buyers were new to the platforms.
While revenue has fallen year over year, Apple is still extremely profitable, with quarterly net revenue of around $30 billion (down nearly 14% year over year) and diluted earnings per share of $1.88. Apple declined to provide specific guidance for the March quarter, but Chief Financial Officer Luca Maestri said the company expects year-over-year results to be “similar to the December quarter. “.
