Apple posts disappointing first quarter results
It was Apple's biggest quarterly revenue drop since 2016
Apple on Thursday released its first-quarter earnings for fiscal 2023, with revenue, earnings per share and two of its segments coming in below estimates.
The company reported generating $117.2 billion in first-quarter revenue. That figure was below the $121.1 billion estimated by Refinitiv analysts.
In comparison, its first-quarter revenue for fiscal 2022 was $123.9 billion.
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Meanwhile, the iPhone maker said its net income narrowed 13% from the $34.6 billion reported in the same period the prior year, posting $30 billion. It reported a diluted earnings-per-share of $1.88, meaning it was lower than analysts’ $1.94 estimate.
Two of its operating segments, iPad and services, topped analyst expectations.
The company said it posted roughly $9.4 billion in quarterly iPad net sales, compared to $7.25 billion in the same period the year before. Estimates had put iPad net sales at $7.76 billion for the first-quarter of fiscal 2023.
Services had $20.77 billion in net sales, above estimates of $20.67 billion.
"We set an all-time revenue record of $20.8 billion in our Services business, and in spite of a difficult macroeconomic environment and significant supply constraints, we grew total company revenue on a constant currency basis," Apple CFO Luca Maestri said in a statement.
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Apple's other segments – iPhone, Mac, and wearables, home and accessories – were below estimates from Refinitiv analysts.
First-quarter net sales for the iPhone segment fell 8% year-over-year to about $65.78 billion, while its Mac net sales came in at roughly $7.74 billion. Estimates for those segments were $68.29 billion and $9.63 billion, respectively.
Wearables, home and accessories saw $13.48 billion in net sales for the first quarter, compared to the $15.22 billion analysts had projected.
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CEO Tim Cook said in a statement that Apple was "excited to report that we now have more than 2 billion active devices as part of our growing installed base," something he called a "major milestone."