AAPL reports rare Q1 2023 earnings miss on weak iPhone sales
Apple’s highly-anticipated earnings for fiscal Q1 2023 are here, covering the months of October, November, and December. This quarter represents the all-important holiday shopping season for Apple and was also the first full quarter of iPhone 14 availability.
In a quarter significantly impacted by supply chain shortages, Apple reported $117.15 billion in revenue with a profit of $29.99 billion. That’s a decline of 5% in revenue and 13% in net income, compared to the same quarter one year ago.
Going into today’s Q1 2023 earnings release, analysts were pessimistic in their predictions. The consensus among analysts was for total revenue of $122.85 billion, which means they were expecting a decline of around $1 billion compared to Q1 2022.
The context here is that Apple battled significant supply constraints in Q1 2023, primarily affecting the iPhone 14 Pro and iPhone 14 Pro Max. Apple was even forced to release a statement to investors back in November, warning that iPhone 14 Pro shipments would be lower than previously anticipated.
Today’s release of Q1 2023 earnings gives us a closer look at how big of an impact those supply shortages had on Apple’s performance.
AAPL Q1 2023 earnings details
For context, Apple reported a record revenue of $123.95 billion for Q1 2022 with a profit of $34.6 billion. That represented an all-time revenue record for the company. The 5% year-over-year revenue decline represents Apple’s largest quarterly revenue decline since 2016.
Apple no longer reports unit sales for any of its products, but instead reports a breakdown of revenue by product category. Here is the full breakdown for fiscal Q1 2023, compared to fiscal Q1 2022 numbers.
- iPhone: $65.78 billion (vs. $71.63 billion)
- Mac: $7.74 billion (vs. $10.85 billion)
- iPad: $9.40 billion (vs. $7.25 billion)
- Wearables, home, and accessories: $13.48 billion (vs. $14.70 billion)
- Services: $20.78 billion (vs. $19.5 billion)
Apple CEO Tim Cook touted the company’s performance in Q1 2023, saying:
“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,” said Tim Cook, Apple’s CEO. “During the December quarter, we achieved a major milestone and are excited to report that we now have more than 2 billion active devices as part of our growing installed base.”
Apple CFO Luca Maestri echoed Cook, adding:
“We set an all-time revenue record of $20.8 billion in our Services business, and in spite of a difficult macroeconomic environment and significant supply constraints, we grew total company revenue on a constant currency basis,” said Luca Maestri, Apple’s CFO. “We generated $34 billion in operating cash flow and returned over $25 billion to shareholders during the quarter while continuing to invest in our long-term growth plans.”
You can read Apple’s full earnings release in this post on Apple Newsroom. Stay tuned to 9to5Mac for more coverage from the AAPL earnings call with Tim Cook and Luca Maestri next. You can also listen live via the company’s Investor Relations website at 2 pm PT/5 pm ET.
AAPL share prices are sliding in after-hours trading, down as much as 5%.
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