Apple reported worse than forecasts for the first time since 2016

Apple on Thursday reported its first-quarter financial results that fell short of analysts’ expectations, driven by lower iPhone sales amid a worsening economy and manufacturing problems in China. The company’s profit came in below forecasts for the first time since 2016.

Apple (NASDAQ:AAPL) shares fell 3% after the report was published.

The company reported earnings per share of $1.88 on revenue of $117.2 billion. Analysts polled by Investing.com had forecast earnings per share of $1.94 on revenue of $121.88 billion.

The results were weaker than expected as margins fell 7% and quarterly revenue fell the most since 2016, pressured by weak iPhone sales.

iPhone revenue fell about 8% to $65.78 billion, impacted by difficult macroeconomic conditions and significant supply constraints on the devices.

Last November, Apple warned that COVID-19 restrictions temporarily impacted operations at its main iPhone 14 Pro and iPhone 14 Pro Max assembly plant in Zhengzhou, China.

Revenue in the company’s higher margin services segment rose to $20.77 billion from $19.52 billion.

Apple’s revenue in the portable devices, home products and accessories sector fell from $14.70 billion to $13.48 billion compared to the same period last year, while iPad revenue rose from $7.25 billion to $9.40 billion.


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