Apple’s 2023 fiscal year 1st quarter report + income and profit
After several seasons of stellar performance despite mounting economic woes, Apple’s revenue, profit and sales numbers in many of its businesses finally came in weaker than Wall Street analysts had expected. As a result of this situation, the value of Apple shares fell.
as CNBC He writes, Apple’s sales in the 2022 holiday season were about five percent lower than in 2021. This is the first time since 2019 that the sales of Apple products face an annual decline.
Tim CookApple’s CEO says three factors affected the company’s financial performance in the quarter ending in 2022: a strong dollar, production problems for the iPhone 14 Pro and iPhone 14 Pro Max in China, and increasing economic problems. Cook says the difficult economic situation has affected the performance of all companies.
Apple’s stock temporarily fell as much as 4 percent, but rebounded after Apple released its modest guidance for the first quarter of 2023. According to Apple’s forecasts, the rate of decline in iPhone sales this season will be lower than the holiday season.
In its latest financial report, Apple said it earned $117.15 billion in the final quarter of last year, while analysts had expected $121.10 billion. Apple’s revenue in this period has dropped by 5.49% compared to the final quarter of 2021.
In the last quarter of 2022, the revenue of iPhone was 65.78 billion dollars, which indicates a drop of 8.17% compared to a year ago. Mac revenue fell by 28.66% and iPad revenue rose by 29.66%. These two business units brought in $7.74 billion and $9.4 billion in revenue for Apple, respectively.
In the same period, Apple’s “other products” revenue, which includes things like the Apple Watch and AirPods, fell 8.3 percent to $13.48 billion. The revenue of Apple’s service unit, with a growth of 6.4%, exceeded 20 billion dollars for the first time and even exceeded the expectations of analysts.
Apple says its gross profit margin in the final quarter of 2022 was 42.96 percent. Analysts had predicted the number of 42.95%.
Apple has not released full guidance for the current quarter ending in late March (mid-April). Apple will not release any guidelines from 2020 onwards. Analysts expect Apple’s revenue to reach $98 billion this quarter.
Apple’s chief financial officer said in a conference held with shareholders that he expects the company’s revenue to decline in the current quarter in a manner similar to the final quarter of 2022. Service unit revenue is expected to continue to grow, but Mac and iPad sales will decline.
This is the first time in seven years that Apple has recorded a weaker performance than analysts expected. Also, since 2019, Apple’s revenue has not decreased annually. Additionally, this is the first time since 2016 that Apple’s quarterly revenue has declined to this extent.
Tim Cook says that during the holiday season, the largest iPhone factory in China faced a massive shutdown and the production volume was greatly reduced. The same thing caused the number of iPhones in the market to decrease and finally the sales figures were affected. According to the CEO of Apple, the production in the big factory in China has returned to normal conditions.