Tim Cook confirms Q1 iPhone revenue would have grown if not for supply issues
Apple reported its Q1 2023 earnings today, missing analyst expectations due in part to a decline in iPhone revenue. Speaking to analysts during Apple’s earnings call, CEO Tim Cook acknowledged that had it not been for iPhone 14 Pro supply shortages, iPhone revenue would have grown in Q1 2023 compared to Q1 2022.
This confirmation from Tim Cook isn’t necessarily surprising. Apple’s highest-end and most popular iPhone 14 Pro and iPhone 14 Pro Max devices were largely unavailable through the important holiday shopping season. This, of course, had a significant impact on Apple’s earnings for Q1 2023 revenue.
- Q1 2023 iPhone revenue: $65.78 billion
- Q1 2022 iPhone revenue: $71.63 billion
This means that, at the very least, iPhone 14 Pro supply shortages cost Apple around $6 billion in revenue for Q1 2023. This would have brought Apple’s overall quarterly revenue to around $123 billion, down roughly $1 billion compared to Q1 2022.
Cook was also asked several times about consumer behavior regarding the iPhone 14 Pro shortages. Analysts asked whether those customers who wanted to buy an iPhone 14 Pro in December purchased the device despite the extended wait times, bought a different iPhone instead, deferred their purchase, or canceled their purchase. Cook, however, said he did not have all of the data necessary to answer these questions.
The Apple CEO also touched on market share, saying that the iPhone “grew around the world” last quarter despite supply shortages:
I don’t have the exact market shares in front of me, but I think you would see that from a market share point of view that we grew around the world, last quarter, despite the iPhone challenges we had on the supply side.
Moving through Q2 2023, Cook confirmed that Apple has resolved iPhone 14 Pro supply shortages and is now “shipping to the demand.”
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