Apple on Thursday released quarterly sales and net income below year-on-year and below expectations, which suffered from the decline in sales of iPhones, Apple’s flagship product.
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According to a statement, revenue came in at $117.1 billion, down 5.4% year over year for the October-December period, the first quarter of the lagging fiscal year.
The results of the Cupertino Group (California) were marked by the fall in sales of Iphones, which fell by more than 8% in one year.
Apple reported disruptions at its Zhengzhou (China) site, the largest manufacturing facility for the brand’s famous phones, in early November due to an outbreak of Covid-19 cases.
The company recognized that these events would reduce factory-assembled iPhone 14 Pro volumes.
During the results conference call Thursday, Chief Executive Tim Cook said the slowdown continued “through most of December.”
The manager put the stop in iPhone sales into perspective and explained that they were almost stable without currency effects.
In the past year, the high dollar rate has disadvantaged American companies that do a significant proportion of their sales abroad.
Tim Cook also justified the drop in sales with a “difficult macroeconomic environment”. “Apple is not immune” to this degraded situation, the CEO acknowledged.
Overall, sales of physical products fell 7.7% over the course of a year.
This stalemate was partially offset by the services business, which includes the App Store application store, streaming service Apple Music, and remote data storage (cloud) services.
The services division posted revenue growth of 6.4% and now accounts for nearly 18% of revenue, a sign of Apple’s gradual transformation.
Group net income was $29.9 billion, down 13%.