Apple Falls Short of Expectations in December Quarter with Decreased Sales of iPhones and Macs

Apple (AAPL) underperformed Wall Street's expectations for the December quarter, as iPhone and Mac sales declined. Apple stock dipped in extended trading.

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The Cupertino, California-based corporation made $1.88 per share on $117.2 billion in revenue during its first fiscal quarter, which concluded on December 31. FactSet-polled analysts anticipated earnings of $1.94 per share on revenue of $121.4 billion. Apple's earnings decreased by 10% compared to the prior year, while sales decreased by 5%.

Before Apple's earnings report, experts were concerned about a probable slowdown in consumer spending on devices and online services. In addition, Apple had supply restrictions due to Covid-related outages at its primary iPhone plant in China during the previous quarter.

In Apple's earnings news release, business officials highlighted the positive

The company's installed base of more than 2 billion active devices, as reported by CEO Tim Cook, represents a significant milestone. This consists of iPhones, iPads, Macs, and other devices.

Apple Stock Plunges Following Holiday-Quarter Results

Apple stock fell 3.9% to 144.93 during after-hours trading on the stock exchange today. Apple's stock closed Thursday's regular session at 150.82, a 3.7% increase.

Chief Financial Officer Luca Maestri emphasized the expansion of the company's services division.

Maestri stated, "In our services division, we reached a new revenue record of $20,8 billion." And despite a challenging macroeconomic environment and considerable supply constraints, we grew our company's total revenue on a constant currency basis.

The December quarter saw a 6% increase in Apple's services revenue, reaching $20.77 billion. However, income from hardware decreased by 8% to $96.39 billion.

iPhone and Mac sales decline, although iPad sales increase

Apple's iPhone sales dropped 8% to $65.8 billion in the December quarter. Wall Street hoped to raise $68 billion. 56% of the company's total sales during the period were accounted for by smartphones.

In the meantime, Apple's Mac computer sales decreased 29% to $7.7 billion. In addition, revenue from Apple's wearables, home, and accessories division fell 8% to $13.5 billion.

In the holiday quarter, iPad sales broke the downward trend by increasing by 30% to $9.4 billion.

According to IBD Stock Checkup, Apple shares have an average IBD Composite Rating of 54 out of 99.

The IBD Composite Rating is a combination of key fundamental and technical criteria designed to assist investors in evaluating a stock's strength. The best growth stocks possess a Composite Rating of at least 90.

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