Apple reported a steeper holiday sales decline than Wall Street had feared, reflecting the toll of the economic slowdown and persistent supply snags.
Revenue in the fiscal first quarter totaled $117.2 billion, the company said in a statement Friday. That compares to Wall Street projections of $121.1 billion. Stocks fell in extended trade.
The results show that Apple has not been able to avoid the technological slowdown that has plagued many of its competitors. Demand for smartphones and computers fell last year, and the Covid-19 restrictions in China added to Apple’s woes during holiday sales. Timing is another issue: The company didn’t launch new Macs and HomePods until a few weeks ago, not until the end of the first quarter.
Earnings came in at $1.88 per share, compared to the average estimate of $1.94 per share. The technology giant based in Cupertino, California did not provide an earnings outlook for the second quarter, continuing the approach adopted at the beginning of the Covid pandemic in 2020.
Apple shares closed up 3.7% at $150.82 in New York. He gained 16% this year.
Chief Executive Officer Tim Cook cited a “challenging environment” in the statement. “We remain focused on the long term,” he said.
Apple made $65.8 billion from its flagship product, the iPhone, missing estimates of $68.3 billion. It also represents a decline of $71.6 billion that the product brought in a year earlier. While the latest iPhone is a significant leap forward from previous versions, factories producing the popular Pro model in China were closed for several weeks during the quarter due to pandemic restrictions.
The company made $7.74 billion from the Mac, less than the estimate of $9.7 billion. That’s a significant drop from $10.9 billion a year ago.
It’s a tough year-over-year comparison because Apple launched its revamped MacBook Pro line in the previous holiday period. This time, it did not update the MacBook Pro and Mac mini models until the current quarter.
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