Apple experiences most significant quarterly revenue decline since 2019

In its Q1 2023 earnings report, Apple revealed that its overall sales during the typically lucrative holiday quarter were five percent lower than last year.

This marks the company’s first year-over-year decline since 2019.

In a press release, Apple CEO Tim Cook cited three factors for the company’s weak sales: production issues in China affecting iPhone 14 Pro and iPhone 14 Pro Max manufacturing, the strong dollar and the worldwide macroeconomic environment.

Given the lengthy order times across all of Apple’s iPhone 14 devices (and some other products, too), the tech giant specifically citing supply constraints as a key reason for eight percent year-over-year downtown in iPhone earnings isn’t surprising.

Apple’s Mac sales also declined a substantial 28.66 percent year- over-year, which, again, makes sense, given the MacBook Pro (2021) revamp that was well-received by critics (including myself) didn’t launch in 2022. That said, the company did release the M2 MacBook Air and Mac Studio in 2022.

On the plus side, Apple’s iPad division received a 29.66 percent boost, likely due to the revamped entry-level iPad and the iPad Pro (2022) being bumped up to the M2 chip. This year, new iPad releases are expected to be scarce, though 2024 is rumoured to mark the reveal of a foldable iPad.

“As we all continue to navigate a challenging environment, we are proud to have our best lineup of products and services ever, and as always, we remain focused on the long term and are leading with our values in everything we do,” said Apple CEO Tim Cook in the company’s earnings press release.

Below is a breakdown of earnings across all of Apple’s various divisions:

• Revenue: $117.15 billion USD (roughly $156 billion CAD) vs. $121.10 billion USD (about $161.3 billion CAD) estimated, down 5.49 percent year-over-year
• iPhone: $65.78 billion USD (roughly $87.6 billion CAD) vs. $68.29 billion USD (approximately $90.9 CAD) estimated, down 8.17 percent  year-over-year
• Mac: $7.74 billion USD (about $10.31 billion CAD) vs. $9.63 billion USD (roughly $12.47 billion CAD) estimated, down 28.66 percent year-over-year
•  iPad: $9.40 billion USD (approximately $12.52 billion CAD) vs. $7.76 billion USD (about $10.34 billion CAD) estimated, up 29.66 percent year-over-year
• Services revenue: $20.77 billion USD (about $27.6 billion CAD) vs. $20.67 billion USD (roughly $27.5 billion CAD) estimated, up 6.4 percent year-over-year
• Other Products: $13.48 billion USD (about $17.9 billion CAD) vs. $15.23 billion USD (approximately $20 billion CAD) estimated, down 8.3 percent year-over-year

Looking to 2023, Apple is expected to finally reveal its virtual reality/augmented reality headset, rumoured to be called the Reality Pro. The tech giant’s iPhone 15 line will also reportedly switch to USB-C.

Source: Apple Via: CNBC