Apple earnings

Apple's overall sales for the holiday quarter were about 5% lower than last year's, the first year-over-year sales decline since 2019.

IPhone and Mac sales were down year over year. - Services revenue: $20.77 billion vs. - Other Products revenue: $13.48 billion vs. - iPad revenue: $9.4 billion vs. - Mac revenue: $7.74 billion vs. - iPhone revenue: $65.78 billion vs. - Revenue: $117.15 billion vs. "And so obviously you need to bring in people that are not currently active on a device in order to grow." The primary iPhone assembly plant in China was affected by Covid lockdowns during the quarter, a warning that had been made to investors in November. It also represented a regression from Apple's success over the past two years driven by a need for new computers to work and go to school from home. Services are expected to grow, Maestri said, but Mac and iPad sales are both expected to decline double digits from the year-earlier period. Apple's overall sales for the holiday quarter were about 5% lower than last year's, the first year-over-year sales decline since 2019.

iPhone, Mac, and wearables sales came in well short of expectations in the latest quarter, raising new questions about consumer demand in a weakening ...

reported disappointing results for the December quarter, missing Wall Street estimates for both revenue and profits. Apple Misses Earnings and Revenue Estimates. Apple

While the tech giant missed Wall Street's revenue and earnings expectations, it reported record services revenue of $20.8 billion.

The price of Apple TV+ increased to $6.99 per month from $4.99 per month, while the annual plan increased to $69 per year from $49 per year. Maestri also spoke to increased customer engagement during the quarter and highlighted the sector’s achievements, which he noted came in spite of challenges in digital advertising and mobile gaming. “During the December quarter, we achieved a major milestone and are excited to report that we now have more than 2 billion active devices as part of our growing installed base.” “We generated $34 billion in operating cash flow and returned over $25 billion to shareholders during the quarter while continuing to invest in our long-term growth plans.” Still, Apple Services, which encompasses Apple TV+, Apple Music, Apple Arcade and more, came in at $20.8 billion for the three months ended Dec. iPhones continued to make up bulk of Apple’s revenue, bringing in $65.8 billion this quarter, down from $71.6 billion a year earlier. Both income and revenue came in below the year-earlier totals of $2.10 and $123.9 billion. Apple Music increased the price of its single plan by $1 per month to $10.99, its family plan by $2 per month to $16.99 per month and the annual plan by $10 to reach $109 per year. 31, setting a new revenue record, up from $19.5 billion a year earlier. “As we all continue to navigate a challenging environment, we are proud to have our best lineup of products and services ever, and as always, we remain focused on the long term and are leading with our values in everything we do,” Cook said. On the investor call, Apple CEO Tim Cook specifically cited foreign exchange headwinds, supply chain challenges related to COVID-19, which impacted Apple’s iPhone 14 and iPhone 14 Pro Max sales, and the challenges of “Inflation, war in Eastern Europe and the enduring impacts of the pandemic,” for the company’s revenue miss. [Apple](https://www.hollywoodreporter.com/t/apple/) missed Wall Street’s [earnings](https://www.hollywoodreporter.com/t/earnings/) and revenue expectations for its first quarter, reporting earnings per share of $1.88 and revenue of $117.15 billion.

Apple posted its first quarterly revenue decline in four years Thursday, alongside a rare earnings miss for the world's most-valuable tech company.

Good day, everyone, and welcome to the Apple Q1 fiscal year 2023 earnings conference call. Today's call is being recorded. And now at this time, for opening ...

And we've made it easier to explore for more services because we've added a lot of services on the platform over the last seven years. And that is due to some of the reasons that I was explaining earlier, including the fact that we made it easier for our customers to get engaged on the platform. If we think about the absolute grit of the installed base from 1 billion to 2 billion over 7 years from a device standpoint, how should we think about the penetration of services or the growth in paying customers on services or that time frame? And I don't have the exact market shares in front of me, but I think you would see that from a market share point of view that we grew around the world last quarter despite -- on iPhone despite the challenges that we've had on the supply side. We have experience in that, but I wouldn't necessarily draw the same conclusion that you have in terms of the cost of the product. The second one is that we are seeing that the level of engagement of our customers already in our ecosystem continues to grow. And I give the example of Apple Pay, which it's a great example because we started off primarily in the United States. And you can look no further than some of the things that we announced in the fall with crash detection and fall detection or back a ways with ECG. So obviously, we need to find offsets and more to the negative FX in order to be able to provide this kind of guidance. However, our installed base of devices in the category set a new all-time record, thanks to the largest number of customers new to a smartwatch that we ever had in a given quarter. As a result, net cash was $54 billion at the end of the quarter, and we maintain our goal of becoming net cash-neutral over time. Operating expenses of $14.3 billion were significantly below the guidance range we provided at the beginning of the quarter and grew at a slower pace than in the past as we took actions to respond to the current macro environment.

Apple earnings show just how tough the macroeconomic environment has been for the hardware giant. Are layoffs next?

High-priced smartphones are less of a priority for consumers amid growing economic uncertainty.

Sales of iPhones, Macs and wearables all dipped from a year prior. At the time, Apple Inc.’s earnings were an even bigger disaster than expected thanks to a combination of a stronger US dollar, global economic malaise, and more strife at its China factories.

Apple Inc.'s business came under pressure in the holiday quarter, as the company posted its largest revenue decline in more than six years.

Services revenue rose to $20.8 billion from $19.5 billion and beat the FactSet consensus, which was for $20.4 billion. Overall revenue declined to $117.2 billion from $123.9 billion a year ago, while analysts were looking for $121.4 billion. Mac sales declined to $7.7 billion from $10.9 billion a year earlier, while analysts had been looking for $9.4 billion. [AAPL, +3.71%](/investing/stock/AAPL?mod=MW_story_quote)iPhone revenue fell to $65.8 billion in the fiscal first quarter from $71.6 billion a year before, whereas analysts tracked by FactSet were looking for $67.8 billion. Mac growth was negatively impacted by economic conditions, currency pressures and tough comparisons to a year before. The performance comes after Apple [warned in November](https://www.marketwatch.com/story/apple-warns-that-iphone-14-pro-and-pro-max-shipments-will-be-affected-by-china-production-issues-11667777870?mod=article_inline&mod=article_inline&mod=article_inline&mod=article_inline)that its iPhone 14 Pro and Pro Max shipments would be impacted by pandemic-fueled production constraints at a major Foxconn [2354,](/investing/stock/2354?countryCode=TW&mod=MW_story_quote)facility in China. That would actually mark an acceleration of sorts, he said, since the December quarter benefited from an extra week. Analysts were modeling $1.94 in earnings per share. Revenue for wearables, home and accessories came in at $13.5 billion, down from $14.7 billion a year before and far below the $15.3 billion that analysts were modeling. Maestri noted that the iPad business benefited from the launch of new iPads during the quarter as well as comparisons to a year-earlier period in which Apple faced supply constraints. Revenue increased to $9.4 billion from $7.3 billion a year earlier. [quarterly revenue record for Macs in the September quarter](https://www.marketwatch.com/story/apple-earnings-show-iphone-sales-miss-amid-questions-about-smartphone-demand-stock-dips-11666903283?mod=search_headline&mod=article_inline&mod=article_inline), Apple fell way short of those heights in the December quarter with its Thursday afternoon report, and the company missed expectations by a wide margin.

Big Tech led U.S. markets on a sharp rebound to kick off 2023. The message from their earnings on Thursday: not so fast.

"In many respects we're waiting for that other shoe to drop – the impact of higher rates on the economy, inflation, earnings and jobs," said Jack Ablin, co-founder and chief investment officer at Cresset Capital, which manages $30 billion. [(MSFT.O)](https://www.reuters.com/companies/MSFT.O), the four U.S. Consumer staples giant Clorox said product volumes fell in three of the company's four business segments in the fourth quarter, while Cost-cutting by Alphabet and Meta led some investors to think that interest rates are affecting demand. Big Tech surged Thursday following a strong quarterly report from Facebook-owner Meta Platforms Inc [(META.O)](https://www.reuters.com/companies/META.O). They, and other companies, are still grappling with higher interest rates that are slowing demand. Shares of the three companies fell between 2.7% and 5% in premarket trading and they were set to lose nearly $200 billion from their collective market valuation. Some investors saw silver linings from Apple and other bellwethers, including Starbucks, that reported results on Thursday. The reports renewed questions about global economic demand, the effect of higher interest rates and whether the market's January rally got ahead of itself. The message from their earnings on Thursday: not so fast. markets on a sharp rebound to kick off 2023. [(AAPL.O)](https://www.reuters.com/companies/AAPL.O), Google parent Alphabet [(GOOGL.O)](https://www.reuters.com/companies/GOOGL.O) and Amazon.com [(AMZN.O)](https://www.reuters.com/companies/AMZN.O) all posted results for the end-of-year quarter that left a sour taste in investors' mouths.

Earnings at Alphabet and Amazon miss analysts' estimates. Fiscal first-quarter revenue of $117.2 billion at Apple falls 5% from a year earlier, marking the ...

Can Markets Continue To Rally? Markets have staged an impressive rally so far this year. This week alone through Thursday, the S&P 500 is up 2% while the Nasdaq ...

I’m interested to see how the market digests the jobs report. It will be interesting to see how the Fed digests this number and what, if any, impact it will have when they meet again next month. I’m also very curious how investors respond to the disappointing reports from Alphabet, Amazon and Apple. A much stronger than expected report showed 517 thousand new nonfarm jobs and a drop in unemployment to 3.4%. The unexpectedly strong report may have had the effect of higher expectations for other tech companies on Thursday. What’s interesting to note here is that the Dow, while at one time a good barometer for markets, has since become an antiquated gauge largely because of how it is weighted.

Apple's top and bottom line misses don't change the underlying bullish thesis for the company, Morgan Stanley analysts said.

The company also reported misses on the top and bottom lines, beating analyst expectations only in iPad and services revenue. Investors have apparently embraced Morgan Stanley's appraisal of Apple's durability as a long-term investment. "We believe Apple's ability to post the highest gross margin in a decade despite seeing revenue decline Y/Y is impressive, and moving forward, we expect gross margins to improve as mix, FX, commodities, and logistics all work in Apple's favor through the rest of 2023 and into FY24," Morgan Stanley's note said. [Morgan Stanley](/quotes/MS/) assesses those [headwinds as transitory,](https://www.cnbc.com/2023/02/02/apple-telegraphed-that-things-are-getting-better-after-a-tough-quarter.html) noting both accelerated growth in iPhone installed base and a continued upward margin trajectory as longer-term upside which will ensure "the Apple flywheel keeps spinning." [Apple](/quotes/AAPL/), Morgan Stanley analysts wrote in a [note Friday](https://www.cnbc.com/2023/02/03/analysts-stand-by-apple-say-iphone-makers-flywheel-keeps-spinning-despite-disappointing-earnings.html) that reiterated an overweight rating and a $175 price target. [Apple's Thursday night earnings](https://www.cnbc.com/2023/02/02/apple-aapl-earnings-q1-2023.html) report cited a strong dollar, continued production issues in China, and the broader macroeconomic environment as three reasons for Apple's first year-over-year sales decline since 2019.

Technology bellwethers Apple Inc., Amazon.com Inc. and Alphabet Inc. posted results Thursday that show an economic slowdown is throttling demand for ...

Alphabet’s [results](https://www.bloomberg.com/news/articles/2023-02-02/google-shares-gain-as-revenue-meets-analyst-estimates) missed estimates after customers curtailed orders for ads that appear alongside online search results. Amazon’s [revenue was trimmed](https://www.bloomberg.com/news/articles/2023-02-02/amazon-reports-robust-sales-quieting-fears-over-slower-growth) by soft consumer demand for products sold online and slowing growth in a once-booming business that provides remote computing power to companies. [sales](https://www.bloomberg.com/news/articles/2023-02-02/apple-sales-miss-estimates-in-face-of-supply-snags-slow-economy) fell more than analysts predicted during the holiday quarter, slammed by slack purchases of iPhones and Macs.

Apple (AAPL) announced its Q1 earnings on Thursday, reporting a rare miss on analysts' expectations, as revenue fell 5% year-over-year to $117.2 billion.