Apple misses first-quarter earnings expectations as iPhone sales fall short

Apple (AAPL) reported its first-quarter earnings after the closing bell on February 2, below top- and bottom-line analyst expectations as iPhone sales fell short, declining more than 8%. year after year.

Here are the biggest numbers from the report compared to what Wall Street expected, as compiled by Bloomberg.

  • Income: $117.1 billion vs. $121.1 billion expected

  • adj. earnings per share: $1.88 versus $1.94 expected

  • iPhone income: $65.7 billion vs. $68.3 billion expected

  • Mac Income: $7.7 billion vs. $9.72 billion expected

  • Income per iPad: $9.4 billion vs. $7.7 billion expected

  • Usable: $13.4 billion vs. $15.3 billion expected

  • Services: $20.7 billion vs. $20.4 billion expected

Apple shares fell more than 3% immediately after the report.

“As we continue to navigate a challenging environment, we are proud to have our best line of products and services and, as always, we remain focused on the long term and lead by our values ​​in everything we do,” said the CEO of Manzana. Tim Cook said in a statement.

Apple faced significant headwinds during November and December, from the COVID shutdowns and worker protests at manufacturer Foxconn’s facility in Zhengzhou, China. The plant, which employs 200,000 workers, produces most of Apple’s iPhone 14 Pro and iPhone 14 Pro Max phones.

The Pro and Pro Max, which start at $999 and $1,099, respectively, are two of Apple’s biggest devices. Its higher prices help boost the average selling price of the iPhone, which generates more revenue for the tech giant.

According to IDC’s Worldwide Quarterly Mobile Phone Tracker, Apple’s iPhone shipments fell 14.9% year-over-year, from 85 million units in Q4 2021 to 72.3 million units in Q4 2022. .

While iPhone sales fell, Cook announced that there are now two billion active devices among Apple’s installed base. Mac and Wearables sales also fell year-over-year, though Apple telegraphed those drops during its fourth-quarter earnings report.

Despite slowing sales, Apple still managed to avoid large-scale layoffs, unlike peers including Microsoft, Google and Amazon (AMZN).

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