Apple has released a quarterly report for the first quarter of fiscal year 2023, which reported on December 31 for the first time since Q2 2019. The main reasons are said to be a decrease in iPhone sales due to quarantine measures in China, a strong currency, and general macroeconomic factors.
Apple's revenue decreased by 5.4 percent in the previous quarter from $121.1 billion. The company's earnings per share also fell by 10.9 percent year on year.
Apple faced a range of difficulties during the first quarter of fiscal year 2023. Among them were issues with the iPhone 14 Pro and Pro Max, which were caused by COVID-19 and related disturbance at the largest iPhone assembly factory in Zhengzhou, China.
Apple stated in a report that iPhone sales generated $65.8 billion in revenue last quarter, compared to $68.3 billion predicted by analysts. Sales of wearables and other Apple devices last quarter fell 8.1 percent year over year to $13.48 billion, also below market expectations of $15.23 billion.
This is a 28.66% decrease from last year, and it is also significantly less than analyst's expectations of $9.6 billion.
The only hardware segment that saw growth in the last quarter was the iPad, which increased immediately by 29.66% to $ 9.4 billion, and significantly exceeded analysts' estimates of $ 7.76 billion. This is due to the release of new models and the absence of a shortage, which had hampered sales of Apple tablets a year earlier.
Apple Services, which include Apple Music and Apple TV+ audio and video streaming services, the App Store, Apple Pay, iCloud, and other services, increased 6% year over year to $20.8 billion, slightly ahead of estimates. Apple Pay and Apple Card, and music, are strong areas of Apple services, according to Cook.
Apple's CFO Luca Maestri predicted that Mac and iPad revenue would decrease by two figures in the current quarter, while smartphone revenue will decline faster than in the previous quarter.
Apple investors are waiting to see if the company will explore new market segments this year. There are high expectations for Apple's planned flagship mixed reality headset this year, which might cost around $3,000. Alternatively, there are rumors that the company is working on a more affordable AR / VR device.
Apple hasn't announced large layoffs, although the business is slowing down its recruitment and is cutting costs, according to Cook.
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