Apple said it has surpassed 2 billion active devices, but the tech giant disappointed Wall Street with its fiscal first-quarter results.
The tech giant reported revenue of $117.2 billion, down 5% from the year-ago quarter, with earnings per diluted share of $1.88. Wall Street analysts’ consensus forecast was for revenue of $121.1 billion and earnings of $1.94.
In its earnings release, the company cited a “challenging environment” during the quarter ended December 31, which included a wave of disruptions in China. CFO Luca Maestri noted that revenue in the company’s Services unit (which includes streaming offerings like Apple Music and Apple TV+) set a record with $20.8 billion in revenue during the quarter.
Apple stock, like many tech issues, has started 2023 in rebound mode, gaining ground since a bruising 2022 came to a close. But the shares slipped 4% in after-hours trading after the earnings release and the latest reminder that the tech sector is not yet out of the woods.
Revenue from the iPhone — a financial cornerstone for the company over the past decade — missed expectations at $65.7 billion. Operations in China, both at factories and in retail stores, encountered problems during the quarter due to Covid.
At the same time Covid and other macroeconomic forces squeezed the iPhone business, a line of expensive phones also helped the top line.
While it is facing many of the same headwinds as other tech leaders, Apple has not yet implemented widespread layoffs. Peers like Amazon, Meta and Google parent Alphabet have all cut significant numbers of staffers and trimmed their real estate portfolios.
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