The tech manufacture was already ample earlier nan COVID-19 pandemic began upending lives astir nan world 3 years ago. But it continued to grow, arsenic we each became ever much reliant connected our smartphones, computers and videoconference calls.
Now Apple is nan latest tech elephantine to awesome that this play of maturation whitethorn beryllium coming to an end.
The institution reported that income of its astir important product, nan iPhone, fell much than 8%, to astir $65.8 billion. The reason, Apple said, included respective factors, specified arsenic nan fluctuating value of nan US dollar crossed nan world and particularly beardown income of its products successful nan anterior year. But nan existent crunch came from COVID-19 shutdowns precocious past twelvemonth crossed nan Chinese manufacturing centers Apple relies on. The results led to protests successful China, and proviso shortages for Apple's iPhones, successful peculiar its $999 iPhone 14 Pro series.
Apple CEO Tim Cook said galore of those manufacturing problems person been resolved, for now.
All told, Apple said it notched profits of astir $30 billion, down 13% from nan aforesaid play past year. That translates to $1.88 per stock successful profit, from astir $117.2 cardinal successful wide revenue, which itself was down much than 5% from nan $123.9 cardinal reported past year. It besides fell short of mean expert estimates, which were $1.94 per stock successful profits connected $121.1 cardinal successful revenue, according to surveys published by Yahoo Finance.
"I'm proud of nan measurement we person navigated circumstances seen and unforeseen complete nan past respective years," Cook said connected a convention telephone aft nan company's financial study Thursday. "I stay incredibly assured successful our squad and our ngo and successful nan activity we do each day."
Apple's banal fell astir 2%, to $148.15 per share, aft closing regular trading up much than 3% for nan day. Investors pushed nan company's shares above $3 trillion for a short period last year, and though Apple's worth has fallen to astir $2.39 trillion, it's still nan astir highly weighted institution successful nan world.
Part of a larger trend
Apple's financial disclosures, covering nan 3 months of its first fiscal 4th ending successful December, are nan latest successful a constellation of reports that progressively springiness a image of really nan tech world is faring done this play of economical uncertainty. Tech's biggest giants person raised alarms of a unsmooth spot aft years of seemingly unstoppable growth during nan pandemic. Apple successful peculiar reported all-time grounds gross and profits this clip past year, after its iPhone 13 was a deed of nan 2021 vacation shopping season.
But a operation of continued parts shortages, COVID lockdowns successful China's manufacturing centers, and group pulling backmost spending complete fears of a recession person knocked galore tech companies for a loop. Amazon, Facebook genitor Meta and Google genitor Alphabet person all gone done melodramatic layoffs, citing falling advertizing revenue. Other companies, specified arsenic Microsoft, besides instituted layoffs.
Apple, for its part, has stiff hiring successful immoderate areas, and Cook has volunteered to reduce his imaginable early compensation.
One logic for that attack could beryllium that Apple's iPhone section wasn't nan only merchandise conception facing challenges. Its Mac machine team, including its MacBook laptops , reported that income fell astir 29%, to $7.7 billion. The company's wearables and accessories business besides notched income that dropped, much than 8%, to astir $13.5 billion, contempt Apple having introduced a caller utmost sports-focused $799 Apple Watch Ultra and revamped second-generation AirPods Pro earbuds.
Still, Cook tried to support a affirmative tone, saying nan institution is "focused connected nan agelong term." He besides noted that nan institution tallied much than 2 cardinal progressive devices crossed each its merchandise categories, a caller "all-time-high."
"We are excited astir nan twelvemonth to come," he told analysts. "At Apple we are ever looking forward, ever focused connected nan adjacent challenge."