The first quarter of Apple’s fiscal year, which spans the last three months of 2023, was reported on in the company’s latest financial report. As a result of supply chain challenges, total revenues, and sales are down from the previous year. Despite the grim outlook, the corporation noted some bright spots, including the fact that it now has 2 billion devices in use and that its Services sector earned record revenue. A total of $117.1 billion was earned in revenue for the three months ending on December 31, 2022, down from $123.9 billion during the same period in 2021. The 13% drop in net profits from $34.6 billion to approximately $30 billion is significant.
Apple Sales In 2023 At A New Low
Apple no longer provides unit information and instead reports revenue broken down by division. Even while iPhones are responsible for more than half of all sales, overall numbers are down 8% from the previous year. Income from the Services segment was $20.8 billion from October through December 2022, an increase of 6% over the same period the year before. iPad sales increased over 30%, from $7.2 billion to $9.3 billion, making them the only other product category to show growth.
Apple CEO Tim Cook boasted that his business has “the finest range of goods and services ever.” CFO Luca Maestri stated that although sales may seem to be down on paper, they rose when measured in constant currency. Over $25 billion, or $0.23 per share in cash, was distributed to shareholders by the corporation out of its $34 billion in cash flow. With the pandemic’s end, the IT industry saw a boom, but now many businesses are warning of a dramatic economic slump. Apple CEO Tim Cook has acknowledged the company’s “difficult situation.”
He attributed the drop in sales to a combination of factors, including supply difficulties caused by the Covid-19 outbreak in China (where its phones are produced), a strong dollar, and general economic malaise owing to increasing costs, the conflict in Ukraine, and the aftermath of the pandemic.