Apple recently released its fiscal first-quarter earnings report, revealing a lower-than-anticipated revenue of $117.2 billion, compared to the estimated $121.1 billion. This miss in revenue projections is attributed to the decline in sales of its iPhone, which generated $65.8 billion, falling short of the expected $68.3 billion. The pandemic and related restrictions in China also played a role in affecting the company’s performance during the holiday sales period.
Additionally, the global smartphone market saw a decrease of 18.3% YoY to 300.3 million units in the fourth quarter of 2022, as reported by the International Data Corporation. This, along with the temporary closure of factories producing the iPhone Pro models, contributed to lower-than-expected iPhone sales.
The company’s Mac product line also saw a drop in sales, generating $7.74 billion, compared to the expected $9.7 billion, and significantly lower than the $10.9 billion reported a year earlier. The timing was another factor affecting the Mac sales, as the launch of new models and HomePods occurred after the end of the first quarter.
In light of the challenging environment, Apple CEO Tim Cook spoke about the company’s performance in a statement, acknowledging the impact of the current economic slowdown and supply issues. Apple’s shares saw a decline in extended trading after the release of the earnings report.
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