hit tracker
Monday, March 27, 2023
HomeLatest NewsApple's profit disappoints the market after the 'Covid zero' hit

Apple’s profit disappoints the market after the ‘Covid zero’ hit

Date: March 27, 2023 Time: 06:44:10

Apple’s results are below market expectations. The apple company has announced a net profit of 29,998 million dollars between October and December, its first fiscal, which is 13% less than in the same quarter of the previous year, while its turnover falls year-on-year for the first time since 2019.

Investors seem to play down the importance of this moderation of the accounts in an inflationary context and, although at an initial moment Apple’s titles have fallen by almost 4% in the ‘after hours’ market, this decline has deflated. The largest Wall Street company by capitalization volume (2.39 trillion dollars), saw its price drop significantly over the past year, but its shares have recovered around 20% in value so far in 2023 in the heat of the rally in equities.

In its first quarter of 2023, the Cupertino-based group entered 117,154 million dollars, 5.5% less than a year earlier. The October-December period is especially important for Apple because it is that of the Christmas campaign, but on this occasion the technology company saw how the sales of its flagship products clearly suffered.

The iPhone brought revenue of 65.775 million dollars for Apple in the last quarter, 8.17% less than in that period of the previous year, while Mac sales fell by 28.66%, to 7.735 million dollars, and those of the iPad 29.66%, up to 9,396 million. The rest of the products generated a turnover of 13,482 million dollars, 8.3% less in the interannual comparison, while the services business did grow, 6.4%, to 20,766 million dollars.

By geographical areas, the American continent continued to represent the most important part of Apple’s business, with revenues of 49,278 million dollars, followed by Europe and China, but sales declines were recorded in all regions in the latter. In addition to the general economic slowdown, Apple has been affected by the strength of the dollar and by production problems of its latest iPhones in China as a result of the wave of infections that has shaken the country and the strong restrictions imposed by the Government to cope with the situation.

“As we continue to navigate a difficult juncture, we are proud to have our best line of products and services and, as always, we remain focused on the long term and leading with our values ​​in everything we do,” Tim Cook said in a statement, the CEO of Apple, who highlights as a “milestone” having reached 2,000 million active devices. Unlike other tech giants, Apple has so far not announced any reductions in its workforce, which grew at a slower rate than some of its competitors during the boom the industry grew during the pandemic.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

Most Popular

Recent Comments