Apple Revenue Falls with Decline in iPhone Sales

Apple reported its overall revenue of $117.2 billion was 5.5% lower year-on-year in its fiscal first quarter of 2023. It is the first quarterly decline for iPhone maker since 2019. iPhone revenue fell more than 8% to $65.8 billion.

Net income fell 13.4% to $30 billion. The service division, which includes Apple TV+ and gaming, set a quarterly revenue record of $20.8 billion, up 6.4%. Mac revenue decreased 28.7% to $7.7 billion and iPad grew 29.6% to $9.4 billion.

Apple CEO Tim Cook said a challenging environment over the last three months of 2022 led to a decline in revenue. Cook cited foreign exchange headwinds, Covid-19 issues in China which cut the supply of iPhone 14 Pro and iPhone 14 Pro Max smartphones through most of December, and a challenging macro-economic environment as challenges.

“As a result of a challenging environment, our revenue was down 5%  year-over-year, but I’m proud of the way we have navigated circumstances seen and unforeseen over the past several years.” He noted production was back to where the company wanted it to be but stated the world continued to face unprecedented circumstances including inflation, the war in Ukraine, and the enduring impact of the pandemic. He stated Apple wasn’t immune to those circumstances. Cook noted Apple’s global installed base now reaches more than 2 billion devices.