Apple falls short of first-quarter earnings expectations due to fall in iPhone sales

Apple (AAPL) reported first-quarter earnings after the close of trading on Feb. 2, falling short of analyst expectations for the top and bottom lines as iPhone sales fell more than 8% year-over-year.

Here are the most important numbers from the report compared to what Wall Street was expecting, compiled by Bloomberg.

  • Income: 117.1 billion dollars against the expected 121.1 billion dollars.

  • App. earnings per share: $1.88 vs $1.94 expected

  • iPhone income: $65.7 billion vs. expected $68.3 billion

  • Mac income: $7.7 billion vs. expected $9.72 billion

  • iPad Income: $9.4 billion vs. expected $7.7 billion

  • Wearable: $13.4 billion versus $15.3 billion expected.

  • Services: $20.7 billion vs. expected $20.4 billion

Apple shares fell more than 3% immediately after the release of the report.

“As we all continue to operate in challenging environments, we are proud to have the best line of products and services and, as always, we remain committed to the long term and guided by our values ​​in everything we do.” CEO of Apple. This is stated in a statement by Tim Cook.

In November and December, Apple faced significant setbacks due to quarantine and worker protests at manufacturer Foxconn’s factory in Zhengzhou, China. The plant, which employs 200,000 people, makes most of the Apple iPhone 14 Pro and iPhone 14 Pro Max phones.

The Pro and Pro Max, which start at $999 and $1,099 respectively, are two of Apple’s most important devices. Their higher prices help boost the iPhone’s average selling price, boosting the tech giant’s revenue.

Apple’s iPhone shipments fell 14.9% year-over-year, from 85 million units in the fourth quarter of 2021 to 72.3 million units in the fourth quarter of 2022, according to IDC’s Worldwide Quarterly Mobile Phone Tracker.

While iPhone sales have fallen, Cook announced that there are currently two billion active devices among installed Apple devices. Mac and wearable sales also fell year-over-year, although Apple reported the decline in its fourth-quarter earnings report.

Despite the slowdown in sales, Apple still managed to avoid mass layoffs, unlike its competitors, including Microsoft, Google and Amazon (AMZN).

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