Apple reduced net profit by 13%. Sales fell the most since 2019
Apple Inc. in the first quarter of the 2023 financial year, net profit decreased by 13.4% and revenue by 5.5%, while both indicators did not justify experts’ forecasts. This is stated in the press release of the company.
Photo: CEO Tim Cook 0
► Read the “Ministry of Finance” page on Facebook: главные финансовые новости
Financial results
Net income for the quarter ended December 31 was $29.998 billion, or $1.88 per share, compared with $34.63 billion, or $2.1 per share, for the comparable quarter last year.
Revenue decreased to $117.154 billion against $123.945 billion a year earlier.
Analysts polled by FactSet on average estimated the company’s profit at the level of $1.94 per share on revenue of $121.4 billion.
Revenues from the sale of the iPhone in the last quarter decreased to $65.76 billion from $71.63 billion in the previous year. The consensus forecast assumed $67.8 billion.
The revenue of the App Store, Apple Music, Apple Pay and iCloud services increased to $20.77 billion from $19.52 billion a year earlier.
Quotations of Apple shares in additional trading on Thursday decreased by almost 4% after the publication of the report.
Read also: Buy Apple shares: everything you need to know about the company, its plans and the stock price
The company’s capitalization has decreased by 13% over the past twelve months (to $2.3 trillion), while the Nasdaq Composite stock index has lost 12%, and the Dow Jones Industrial Average has lost 3%.
Falling sales
Apple’s sales at the end of 2022 fell to the level of three-year values. The company explains the situation by the rise in the cost of living and the rise in unemployment in many regions of Europe and Asia.
Sales of the digital giant at the end of last year fell by 5% compared to 2021. The head of Apple, Tim Cook, said that the company works in a “difficult environment” and blamed the decrease in sales on the lack of production due to the COVID-19 pandemic in China, as well as the war in Ukraine and the large-scale economic crisis caused by it.
“As the world continues to face unprecedented circumstances, we know that Apple is not immune to them,” the head of the company said during a conference with investors.
Read also: Apple’s capitalization fell below $2 trillion
Apple said that the decline in sales occurred worldwide and affected most of its products.
Revenues from the sale of Mac computers fell to $7.74 billion from $10.85 billion (with expectations of $9.4 billion), wearable devices, accessories and devices for the home — to $13.48 billion from $14.7 billion (with a forecast of $15 .3 billion).
At the same time, revenues from iPad sales increased to $9.4 billion compared to $7.25 billion (experts estimated it at $7.8 billion).
Author: 
News feed editor Anna Nedogybchenko. She writes on the following topics: Finance, banks, economy, investments
- Apple
- Shares (securities)
Source: Ministry of Finance
Views: 13
