Affected by weak iPhone sales... Apple's profits are lower than expected
Yesterday, Apple announced sales and profits below Wall Street expectations, affected by weak iPhone sales, after the closure related to the Covid pandemic in China disrupted the production of the company’s best-selling products, and Apple’s shares fell 5 percent after the results were announced.
The company's sales fell 5 percent to $117.2 billion and declined in every part of the world during the quarter ended Dec. 31.
Sales fell from each of the company's product categories, but rose for services and iPads.
Earnings per share were $1.88, the first time Apple reported earnings below Wall Street expectations since 2016.
Analysts had expected sales of $121.1 billion and earnings of $1.94 per share, according to Refinitiv data.
Tim Cook, CEO of the company, told Reuters that the production disruptions that hit Apple during the first quarter of the fiscal year are over.
During the first quarter of the fiscal year, Apple faced a wave of challenges that prompted Wall Street to expect sales to decline.
Among the main reasons for this was supply chain pressures at a production facility in Zhengzhou, China, which affected the production of the iPhone 14 Pro and Pro Max phones.