Apple CEO Tim Cook declared a challenging environment over the last three months of 2022 which included the shutdown of a key Chinese factory that makes iPhones led to a decline in revenue.
The company reported iPhone revenue fell more than 8 per cent year-on-year to $65.8 billion in its fiscal Q1 2023, the period from 25 September to 31 December.
Cook cited foreign exchange headwinds, Covid-19 (coronavirus) issues in China which cut supply of iPhone 14 Pro and iPhone 14 Pro Max smartphones through most of December and a “challenging macro-economic environment” as challenges.
“As a result of a challenging environment, our revenue was down 5 per cent year-over-year, but I’m proud of the way we have navigated circumstances seen and unforeseen over the past several years.”
He noted production was back to where the company wants it to be, but stated the world continued to face unprecedented circumstances including inflation, war in Ukraine and the enduring impact of the pandemic. He stated Apple wasn’t immune to those circumstances.
Cook noted Apple’s global installed base now reaches more than 2 billion devices, “a truly incredible milestone”.
Net income fell 13.4 per cent to $30 billion.
Overall revenue of $117.2 billion was 5.5 per cent lower, the first decline since 2019.
The service division, which includes Apple TV+ and gaming, set a quarterly revenue record of $20.8 billion, up 6.4 per cent, which Cook said was better than expected.
Mac revenue decreased 28.7 per cent to $7.7 billion and iPad grew 29.6 per cent to $9.4 billion.Subscribe to our daily newsletter Back