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Apple Reports Lower-Than-Expected Earnings for Q1 2023, Stock Falls 5%

Apple Inc. has reported lower-than-expected earnings for the first quarter of fiscal 2023, causing the company’s stock to fall 5% in after-hours trading on the New York Stock Exchange.

Apple’s earnings per share (EPS) fell 10.9% year-over-year to $1.88, below analysts’ expectations of $1.94, while revenue fell 5.49% to $117.15 billion, also lower than analysts’ expected $121.10 billion.

Revenue from the iPhone product fell 8.17% to $65.78 billion, missing expectations of $68.29 billion. Meanwhile, revenue from Mac products fell 28.66% to $7.74 billion, below the expected $9.63 billion. On the other hand, iPad product revenue rose 29.66% to $9.40 billion, exceeding expectations of $7.76 billion. Services revenue increased 6.4% to $20.77 billion, exceeding the estimated $20.67 billion.

Apple has not released its second-quarter fiscal 2023 forecast due to ongoing uncertainties caused by the COVID-19 pandemic. The company has not disclosed its earnings forecast since 2020.

According to Apple CEO, the company is facing three negative factors that are affecting its performance, including a strong dollar, manufacturing problems in China impacting iPhone 14 Pro and iPhone 14 Pro Max production, and an overall macroeconomic slowdown.

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