Apple on Thursday posted its first quarterly revenue decline since 2019, netting $117.2 billion, down 5 percent year-over-year. iMac sales were particularly hard hit, dropping about 30 percent year-over-year. iPhone sales also fell about 8 percent.
Apple was expected to post a significant revenue decline for the quarter, with several factors weighing on the company’s revenue. Notably, there were weeks of production issues with the iPhone 14 Pro and iPhone 14 Pro Max that spanned the important Black Friday rush hour and made the smartphones nearly untraceable.
In addition, Tim Cook blamed the strength of the US dollar and “the challenging macroeconomic environment” as contributing factors. Indeed, prices for many Apple products have risen quite a bit outside the US, making them less affordable.
There were few bright spots for the company during the holiday quarter, but the iPad had its strongest quarters since 2014 and Services broke $20 billion for the first time:
- iPhone: $65.8 billion (down 8 percent)
- Mac: $7.7 billion (down 29 percent)
- iPad: $9.4 (up 30 percent)
- Portable: $13.5 billion (down 8 percent)
- Services: $20.8 billion (+6 percent)
Cook also announced that Apple has passed the 2 billion active device mark for the first time.
Although sales fell year over year, Apple is still hugely profitable, with quarterly net sales of about $30 billion (down nearly 14% year-over-year) and diluted earnings per share of $1.88.
