Apple Revenue Decline since 2019

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Apple has announced its largest sales drop in quarterly revenue since 2019. Apple’s overall sales over the important holiday quarter from October to December 2022, were 5% lower than last year’s.

They recorded a quarterly revenue of $117.2 billion, compared to the missed expected  revenue of $121.1 billion. This marks the first year over year sales decline since 2019 and largest quarterly revenue drop since 2016.

Apple’s CEO, Tim Cook, credited this decline to three factors: a strong dollar, macroeconomy and  production issues in China of iPhone 14 Pro and iPhone 14 Max.

The primary iPhone assembly plant in China was affected by COVID-19 lockdowns, hence reducing the production of phones to sell.

IPhone and Mac sales went down and the demand for wearables such as Airpods and Apple watch declined by over 8%, albeit having more than 2 billion active devices.

Tim Cook said production levels are now back to levels they are comfortable with. He added that they are avoiding mass layoffs, as is being done by their competitors, but instead, they are cutting costs and have slowed down hiring.

Investors reacted to the news by slowing down stocks, which had fallen by 3% on Friday morning.

BY NKATHA WAINAINA

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