Apple Missed Earnings and Revenue Forecasts. The Stock Is Declining.

Feb 03, 2023

Apple Missed Earnings and Revenue Forecasts. The Stock Is Declining.

Apple reported disappointing results for the December quarter, falling short of Wall Street's revenue and earnings expectations.

Sales in the iPhone, Mac, and wearable device segments, in particular, came in below expectations, raising new questions about whether demand for Apple products - and other consumer electronics products - will be sustained amid falling consumer spending and a weakening macroeconomic environment.

After the report was released, the company's stock initially fell about 4 percent in over-the-counter trading but has since recovered some of its losses.

Apple posted sales of $117.2 billion for the quarter, down 5% from a year ago and falling short of Wall Street's consensus forecast of $121.7 billion. Earnings were $1.88 per share, which also missed the consensus forecast of $1.95 per share and was down from $2.10 per share a year ago.

On a conference call with analysts, CEO Tim Cook stated that foreign exchange headwinds caused a nearly 8% decrease in sales in the quarter, even though sales were stronger year over year on a constant currency basis. He said that production problems in China for the iPhone 14 Pro and Pro Max, publicly revealed last November, harmed performance. He said that the present challenging economic conditions are also affecting Apple.

Apple reported that iPhone sales in the quarter were $65.8 billion, down 8% from a year earlier and below the $68.3 billion Street expectation. The topic of discussion on Wall Street will be whether the company's manufacturing issues with China early in the quarter were the only cause of the miss or whether it is also seeing the effects of slower consumer spending.

During the conference call, Cook stated that the business believes iPhone sales would have increased year over year if China's production problems hadn't occurred.

Mac sales were down 29% to $7.7 billion, far short of the $9.3 billion consensus estimate on Wall Street. Revenue for accessories, homes, and wearables was $13.5 billion, down 8.3%, falling short of the $15.2 billion consensus estimate.

In contrast, iPad revenue exceeded expectations and came in at $9.4 billion, an increase of 29.6%. In contrast to Wall Street's prediction of $20.5 billion, services revenue was $20.8 billion, up 6.4%.

Sales for the corporation fell across the board, with Greater China sales down 7.3%, Europe sales falling 7%, and Americas sales falling 4.3%.

When it comes to gross margin for the quarter, it was 43%, which was lower than the 43.8% from a year before.

Apple said that it repurchased $19 billion worth of shares during the quarter, ending the period with $54 billion in net cash.

Luca Maestri, Apple's chief financial officer, spoke on the current economy during the firm's earnings call with investors, although the business did not issue any precise guidance.

He predicted that the March quarter's overall revenue increase would be comparable to that of the December quarter while also pointing out that the impact of foreign currency would be seen through a five percentage point decline in sales. He predicted that services would increase year over year, although with some challenges from gaming and advertising because of macro circumstances.

Due to unfavorable comparisons, Maestri added, sales of the Mac and iPad will both be down double-digits from a year ago. According to him, sales of the iPhone should go up after the December quarter. He added that the gross margin for the quarter would be between 43.5% and 44.5%.

And according to Cook, Apple now has more than 2 billion active devices installed, an increase of more than 150 million over the previous year. The business also reported that it has more than 935 million paid subscribers to all of its services.

Subscribe Our Newsletter

Bulls Showed Their Horns

Milena

Bulls Showed Their Horns. Bitcoin’s Price Is Rising

For some days now, the price of the most popular cryptocurrency has been rising. Let’s see what is going on.

Crypto
Crypto.Com Expands Venture Arm To $500 Million To Back Early-Stage Web3 Startups
Crypto.Com Expands Venture Arm To $500 Million To Back Early-Stage Web3 Startups

In the first fund, where checks can be as large as $10 million, approximately 20 ventures have been supported, including YGG SEA, DeBank, Efinity, and Matter Labs, an Ethereum scaling solution.

Crypto
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Levan

Why You Should Adopt BSscan in Your Crypto Operations
Binance developed BscScan to simplify navigating their BSC ecosystem. Here’s what you can do with this comprehensive blockchain explorer.

discover
How do Liquidity Providers Make Money?

Liquidity Provider

How do Liquidity Providers Make Money?

Let's find out are Liquidity Providers a must-have partner for a FX broker, ways LPs make money and where to find the most reliable Liquidity Provider.

Liquidity
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.