Apple ended the holiday season with a significant drop in sales and profits. The main driver was the fall in iPhone revenues, which fell more than eight percent year over year to $65.8 billion.
Before Christmas, the American group faced bottlenecks in the new iPhone 14 Pro because factories in China had to close due to corona measures. It remains unclear whether the general weakness of the smartphone market has also played a role. The Mac computer business fell from $10.8 billion to $7.7 billion. In total, turnover fell by about five percent to 117.2 billion dollars (107.4 billion euros). The group missed analysts’ expectations, which had expected $121 billion. The bottom line was a profit of nearly $30 billion – $4.6 billion less than a year earlier.
The iPhone provider had two difficulties in the important market of China, company director Tim Cook told Reuters news agency. Because the corona lockdowns would have affected both production and demand. The group’s sales in China shrank by seven percent to $ 23.9 billion. “When the situation normalized in December, we saw an increase in the number of visitors to our stores compared to November and a higher demand in December.” In addition, production in the affected iPhone factory is back on schedule.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
