Earnings Results: Apple earnings fall short on underwhelming sales of iPhones and Macs

by | Feb 2, 2023 | Stock Market

Apple Inc.’s business came under pressure in the holiday quarter, as the company posted a 5% decline in revenue amid underwhelming sales of iPhones, Macs and wearables. Apple’s iPhone revenue fell to $65.8 billion in the fiscal first quarter from $71.6 billion a year before, whereas analysts tracked by FactSet were looking for $67.8 billion. The performance comes after Apple warned in November that its iPhone 14 Pro and Pro Max shipments would be impacted by pandemic-fueled production constraints at a major Foxconn
facility in China.

After reporting a quarterly revenue record for Macs in the September quarter, Apple fell way short of those heights in the December quarter with its Thursday afternoon report, and the company missed expectations by a wide margin. Mac sales declined to $7.7 billion from $10.9 billion a year earlier, while analysts had been looking for $9.4 billion. Those big misses helped drive total revenue lower on the year and fueled a miss on the top line, despite a sizable beat in the iPad category a year prior, while the FactSet consensus was for $121.4 billion. Dating back to its report for the December 2017 quarter, Apple has only missed revenue expectations twice, according to FactSet, including one time when the company issued a formal warning ahead of its official results. Apple shares
were down 4% in after-hours trading Thursday. Apple’s profits fell as well in the latest period, as the company generated net income of $30.0 billion, or $1.88 a share, compared with $34.6 billion, or $2.10 a share, a year earlier. Analysts were modeling $1.94 in earnings per share. Within its iPad segment, Apple showed sharp growth. Revenue increased to $9.4 billion from $7 …

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