Apple reports decline for the first time since 2019

2023-02-03 19:32:52Biznes SHKRUAR NGA REDAKSIA VOX
Apple reports decline for the first time since 2019

Apple's revenue fell 5% in the final three months of last year to $117.2 billion, a rare decline for the company and significantly worse than Wall Street analysts' expectations.

The decline marks the first time Apple has reported a decline in annual revenue since 2019. The iPhone maker's earnings also fell by more than 13% compared to the year-ago quarter.

Apple shares fell as much as 4% after the close on Thursday.

The disappointing earnings come after Apple faced the shutdown of a key factory in China late last year, hurting its supply. And it comes amid concerns that consumers may cut back on their spending on expensive tech gadgets as recession fears loom. Apple has also taken a hit from high inflation and interest rates.

"As a result of a challenging environment, our revenue was down 5% year-over-year, but I'm proud of how we've weathered the anticipated and unexpected circumstances of the past few years," CEO Tim Cook said Thursday. during a call with analysts to discuss the results.

Cook said the three factors that impacted revenue performance this quarter were changing foreign exchange directions, challenges related to COVID-19 in China, which impacted iPhone 14 Pro and iPhone 14 Pro Max supply, and "the environment macroeconomic challenge".

Cook noted that "the world continues to face unexpected circumstances, from inflation to the war in Eastern Europe, to the strong impacts of the pandemic".

Apple is "not immune" to these challenges, Cook said.

However, the company noted that the number of Apple devices worldwide reaches more than 2 billion. Cook called it "a truly remarkable milestone."

Apple also said its services business, an important area in recent years that includes Apple TV+ and games, achieved a record quarterly revenue of $20.8 billion. That's up 6% from the year-ago quarter, but a marked slowdown in growth compared to the nearly 24% reported a year ago.

"Apple delivered a surprising earnings report," Investing.com analyst Jesse Cohen said in a statement. Apple's weak quarter proves that even the most valued company in the US is not immune to the challenges facing the technology industry in general.

Apple's CFO, Luca Maestri, said the company is not giving guidance on earnings for the next quarter given "continued uncertainty around the world in the near term."

However, Maestri said the company expects year-over-year revenue performance for the first quarter of 2023 to be "similar to December." / CNN Business

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