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Apple pos­ted a decline in quarterly revenues.

 Apple pos­ted a decline in quarterly rev­en­ues for the first time in three and a half years after «sig­ni­fic­ant» sup­ply chain dis­rup­tions in China delayed deliv­er­ies of iPhones dur­ing the import­ant hol­i­day

Iphone

period. The worse than expec­ted per­form­ance high­lighted Apple’s depend­ence on China for man­u­fac­tur­ing and came after ship­ments of its high-end iPhones were hit by an out­break of Covid-19 at an assembly hub run by part­ner Fox­conn in Zheng­zhou. Apple pos­ted total rev­en­ues of $117.2bn for the latest quarter, a fall of 5.5 per cent com­pared with the same period of 2021 and below ana­lyst fore­casts for $121.1bn. «In total, we expect our March quarter year-over-year rev­enue per­form­ance to be sim­ilar to the Decem­ber quarter,» Cook said, adding that sales of Macs and iPads would prob­ably fall by double digits in part because of a «chal­len­ging» eco­nomic envir­on­ment.

Shares of Apple fell by more than 3 per cent in after-hours trad­ing on Thursday but bounced back by the same amount yes­ter­day morn­ing. Apple’s rev­enue short­fall came as Amazon and Alpha­bet poin­ted to fur­ther weak­en­ing in some core mar­kets in the latest quarter. Alpha­bet’s rev­enue came in below expect­a­tions as its advert­ising rev­enue fell for only the second time, partly because of the strength of the US dol­lar and com­par­is­ons with rapid growth a year before. Des­pite the lacklustre earn­ings and out­look; Apple did not announce any job cuts or a cost-cut­ting pro­gramme, mark­ing it out as the only large tech com­pany to avoid mass redund­an­cies.

Apple did not provide any for­ward guid­ance, something it has not done for three years owing to what it describes as pan­demic uncer­tainty.

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Comments

  1. Chris5 February 2023 at 12:20

    If Apple sticks to their guns and doesn't fire people then they will earn even more trust from its clients. Right now, they are the only large tech company that hasn't felt the need to lay off people.

    ReplyDelete
    Replies
    1. Eric5 February 2023 at 13:17

      Huge companies like Microsoft just fired so many people and it makes no sense. Their profits are immense so they would have clearly done very well even with those 10000+ people. It's disappointing and a bad look for such companies to just fire people as soon as things are not going so well.

      Delete

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