Sales, Profit Miss Expectations
Apple’s sales fell 5 percent to $117.2 billion in every part of the world in the quarter. Sales declined for every product category except for gains in services and the iPad. Earnings per share were $1.88.
Analysts were expecting sales of $121.1 billion and profit of $1.94 per share, according to IBES data from Refinitiv. In an interview, Cook told Reuters that production disruptions in Apple’s flagship quarter are now over.
“Production is now back where we want it,” he said.
During its fiscal first quarter ended December 31, Apple faced a wave of challenges that left Wall Street expecting lower sales. Chief among them were supply chain pressures when the COVID lockdown at a production facility in Zhengzhou, China, slowed production of the iPhone 14 Pro and Pro Max devices, both premium-priced models that would traditionally help boost Apple’s margins .
Cook said the lockdown in China has created a twin challenge, where both supply and demand are constrained, with China’s overall sales falling 7 percent to $23.9 billion.
But product issues are now behind Apple. “They still think demand will be soft,” said Ben Bajarin of analyst firm Creative Strategies, “but they’ve ramped up production, which means they can ramp up to meet it if demand unexpectedly rises.” Can get off.”