Apple has posted its first quarterly revenue decline since 2019, bringing in US$117.2 billion which is down five per cent year over year. Mac sales were hit particularly hard, down about 30 per cent year over year. iPhone sales also dipped by roughly eight per cent.
Apple was expected to post a significant reduction in revenue for the quarter, which saw several factors weighing on the company's sales. Most notably, there were weeks-long issues with iPhone 14 Pro and iPhone 14 Pro Max production that stretched over the important Black Friday rush and made the smartphones nearly impossible to find.
Additionally, 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 over the holiday quarter, but the iPad had its strongest quarters since 2014 and Services broke $20 billion for the first time:
- iPhone: US$65.8 billion (Down eight per cent)
- Mac: US$7.7 billion (Down 29 per cent)
- iPad: US$9.4 (Up 30 per cent)
- Wearables: US$13.5 billion (Down eight per cent)
- Services: US$20.8 billion (Up six per cent)
Cook also announced that Apple hit two billion active devices for the first time. Of note, over half of iPad customers and two-thirds of Apple Watch buyers were new to the platforms.
While revenue fell year over year, Apple is still wildly profitable, with quarterly net revenue of about US$30 billion (down almost 14 per cent year over year) and diluted earnings per share of US$1.88.
Apple declined to provide specific guidance for the March quarter, but chief financial officer Luca Maestri said the company expects year-over-year results to be similar to the December quarter.