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“Apple” announced disappointing profits, and the “iPhone” maker recorded its first decline in revenue on an annual basis since 2019, and the largest quarterly decline since 2016. How did the quarterly results compare to Refinitiv expectations?
Earnings per share: $1.88 vs. $1.94 expected, down 10.9% y/y
Revenue: $117.15 billion compared to $121.10 billion, down 5.49% year-on-year
iPhone sales: $65.78 billion compared to $68.29 billion, down 8.17% year-on-year
Mac revenue: $7.74 billion vs. $9.63 billion expected, down 28.66% yoy
iPad sales: $9.40 billion vs. $7.76 billion expected, up 29.66% year-on-year
Other product sales: $13.48 billion vs. $15.23 billion, down 8.3% year-on-year
Services sales: $20.77 billion versus forecasts of $20.67 billion, up 6.4% year-over-year
Gross margin: 42.96% vs. 42.95% expected
technology companies
The results from the world’s largest technology companies come after several weeks of unprecedented rounds of layoffs in the usually irreplaceable sector amid pessimism about the economic outlook.
The depressed mood came after a long period of explosive growth during the peak period of COVID-19 when consumers were using the Internet for work, shopping and entertainment.
Meta, which announced a smaller-than-expected decline in sales in 2022, said it was the first time the company had updated the data on an annual basis since the company went public in 2012.
The social media giant said sales fell 1% to $116.6 billion, while also announcing that Facebook had two billion daily users for the first time. Meta shares jumped 25 percent on Thursday.
Apple privacy
As for Apple, it is the only tech giant that has not yet announced major layoffs in recent weeks, and investors will be taking a closer look at how its sales are affected by China’s no-Covid policy that was only recently lifted.
China remains the main manufacturing center for iPhones, and the severe restrictions negatively affected Apple’s ability to export iPhone 14 during the main holiday season.
And Apple, the world’s largest company by market value, is also weighed down by the decline in smartphone sales worldwide, which is the main driver of profits.
According to the International Data Corporation, worldwide smartphone shipments fell 18.3 percent year-on-year to 300.3 million units in the fourth quarter of 2022.
