Apple choked on the nougat last Christmas. The reasons? several. Among them, the already classic supply problems that have not been resolved. And the low sales of the iPhone.
In fact, the apple company registered its worst Christmas campaign in the last four years with a drop in revenue of 5.5% and obtaining profits in the last quarter of 2022 of 117.1 million dollars -the company expected to bill just over 121 million-.
These numbers, while overwhelming for any average company, are not all the positive one might expect. In fact, It is the first time since 2015 that the company does not meet its Christmas sales projections. And beware, their shares also fell, 5.6% despite the rebound in profits in China or an improvement in Apple’s production problems.
Not only did the popular iPhone suffer, but the Mac didn’t do too well either.. Both dragged by a general trend worldwide that has negatively affected sales of computers and mobile devices. In addition, the restrictions due to Covid-19 weighed down not only the shipment of smartphones, if not the launch of the new Macs and HomePods
“The world continues to face unprecedented circumstances, from inflation to the war in Eastern Europe to the lasting impacts of the pandemic. We know that Apple is not immune to it (…) But regardless of the conditions that (we) face, our approach is always the same. We are thoughtful and deliberate,” said Tim Cook, Apple’s CEO, when all this data was finally released.
And what are Apple’s forecasts for the first quarter of 2023? In the fiscal first quarter, which ended in the US on December 31, earnings per share were $1.88. A figure below expectations, 1.94. In the absence of knowing more data in this regard, the technology giant expects a 5% decrease in revenue from January to March 2023 despite the rise in its shares so far this year.
And perhaps, they admit from the company itself, the arrival of spring will be the turning point -and according to other estimated projections-. Where they expect an acceleration of iPhone revenue from March and an increase in revenue. Although the iPad and Mac are likely to decline.
Earnings by devices
During last Christmas, Apple obtained revenues of 65.8 billion dollars in sales for the iPhone, three billion less than expected. And a downward trend compared to 71.6 a year earlier.
On the other hand, the company earned $7.74 billion from the Mac, well below the estimate of $9.7 billion. And also a significant drop from 10.9 billion a year ago.
The wearables, home and accessories division, a unit that includes Apple Watch, HomePod speakers, Apple TV, AirPods, and Beats, it earned $13.5 million, when expectations were for $15.3 million. And a figure below the 14.7 million dollars of last year.
On other devices things were better. The iPad grossed $9.4 million, beating the estimate of $7.8 million. Some figures helped by the launch of minor updates to iPad Pro and a new model in October.
Services offered by the company generated $20.8 million, beating estimates of $20.5 million and growing from $19.5 million a year ago thanks, no doubt, to rising prices. The cost of Apple Music increased by $1 per month, and Apple TV+ increased by $2. The category also includes the App Store, AppleCare customer service and repairs, and offerings like Arcade and News+.
