Mac sales were down significantly — but Apple expected it.
Apple reported its Q1 2023 earnings this afternoon. During the holiday quarter, the company took in $117.2 billion of revenue, down 5 percent year over year, and earnings per share of $1.88. It was the first such YOY for Apple since before the covid pandemic. Most of the curiosity around this quarter’s numbers was tied to iPhone sales; in early November,for its flagship iPhone 14 Pro and Pro Max.
But the supply issues, combined with consumers being extra mindful of spending amid an uncertain economic outlook, led to an 8 percent drop in iPhone revenue. “As we all continue to navigate a challenging environment, we are proud to have our best lineup of products and services ever, and as always, we remain focused on the long term and are leading with our values in everything we do,” CEO Tim Cook said in Apple’s earnings press release.
The iPhone 14 Pro / Pro Max delays were related to strict restrictions affecting Foxconn, the China-based factory Apple uses to assemble iPhones. Workers clashed with police during protests in the weeks that followed, with employees angry over delayed payments and deteriorating working conditions that stemmed from covid containment measures.
Apple also predicted that Mac sales would “decline substantially” compared to the year-ago quarter. And they sure did, dropping by 29 percent. The company introduced completely redesigned MacBook Pros in October 2021 that drew rave reviews and created buzz throughout the laptop industry. This spurred excitement and sales well beyond the Mac’s typical performance.
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