Apple on Thursday released quarterly revenue and net profit down year on year and below expectations, which suffered from the decline in sales of iPhones, the Apple firm’s flagship product.
Revenue was $117.1 billion, down 5.4% year on year for the October-December period, which is the first quarter of its lagged fiscal year, according to a statement.
The results of the Cupertino (California) group were marked by the contraction in sales of Iphones, down more than 8% over one year.
Apple reported in early November disruptions at the Zhengzhou (China) site, the largest production plant for the brand’s famous phones, due to an outbreak of Covid-19 cases.
The company had recognized that these events would reduce the volumes of iPhone 14 Pro assembled in the factory.
During the earnings conference call, Chief Executive Tim Cook said on Thursday that the slowdowns had continued “throughout most of December”.
The manager put the halt in iPhone sales into perspective, stating that, excluding currency effects, they were almost stable.
The high level of the dollar thus penalized, last year, the American companies which carry out a significant part of their sales abroad.
Tim Cook also justified the fall in turnover by a “difficult macroeconomic environment”. “Apple is not immune” against this degraded situation, acknowledged the CEO.
In total, sales from physical products eroded by 7.7% over one year.
This stall was partially offset by the services business, which includes the App Store application store, its Apple Music streaming service and remote data storage services (cloud).
The service division has seen its revenues grow by 6.4%, and now weighs nearly 18% of turnover, a sign of Apple’s gradual transformation.
Group-wide net profit was $29.9 billion, down 13%.
Revenue was $117.1 billion, down 5.4% year on year for the October-December period, which is the first quarter of its lagged fiscal year, according to a statement. The results of the Cupertino (California) group were marked by the contraction in sales of Iphones, down more than 8% over one year. Apple reported in early November disruptions at the Zhengzhou (China) site, the largest production plant for the brand’s famous phones, due to an outbreak of Covid-19 cases. The company had recognized that these events would reduce the volumes of iPhone 14 Pro assembled in the factory. During the earnings conference call, Chief Executive Tim Cook said on Thursday that the slowdowns had continued “throughout most of December”. The manager put the halt in iPhone sales into perspective, stating that, excluding currency effects, they were almost stable. The high level of the dollar thus penalized, last year, the American companies which carry out a significant part of their sales abroad. Tim Cook also justified the fall in turnover by a “difficult macroeconomic environment”. “Apple is not immune” against this degraded situation, acknowledged the general manager. In total, sales from physical products eroded by 7.7% over one year. This stall was partially offset by the services business, which includes the App Store application store, its Apple Music streaming service and remote data storage services (cloud). The service division has seen its revenues grow by 6.4%, and now weighs nearly 18% of turnover, a sign of Apple’s gradual transformation. Group-wide net profit was $29.9 billion, down 13%.
