Apple said it passed 2 billion active devices, but the tech giant disappointed Wall Street with its first-quarter results.
The tech giant reported revenue of $117.2 billion, down 5% from the year-ago quarter, with earnings per diluted share of $1.88. Wall Street analysts’ consensus forecast was for sales of $121.1 billion and earnings of $1.94.
In its earnings release, the company cited a “challenging environment” during the quarter ended Dec. 31, including a series of disruptions in China. CFO Luca Maestri noted that revenue from the company’s services business (which includes streaming offerings such as Apple Music and Apple TV+) set a record $20.8 billion for the quarter.
Apple shares, like many other tech issues, started 2023 in rebound mode, gaining ground since a bloody 2022 ended. But shares fell 4% in after-hours trading after the earnings announcement and the recent reminder that the tech sector is not out of the woods yet.
iPhone sales — a financial cornerstone for the company over the past decade — beat expectations at $65.7 billion. Operations in China, both factories and stores, struggled during the quarter due to Covid.
As Covid and other macroeconomic forces weighed on the iPhone business, a range of expensive phones also contributed to sales.
Despite facing the same headwinds as other tech leaders, Apple has yet to make major layoffs. Competitors such as Amazon, Meta and Google’s parent company Alphabet have all shed significant jobs and trimmed their real estate portfolios.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
