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Apple posted a 3% decline in revenue

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Apple posted a 3% decline in revenue

Weak PC sales caused a drop in Apple’s quarterly revenue
(photo: Apple)

US consumer electronics maker Apple reported revenue of $94.8 billion for the second fiscal quarter ended April 1, a 3% decline compared to the same period last year. The company’s net income fell from $25 billion to $24.2 billion ($1.52 per share).

Analysts polled by FactSet had expected Apple to report quarterly sales of $92.9 billion and net income of $1.43 per share. The company stopped making forecasts during the coronavirus pandemic, but CFO Luca Maestri told analysts that he expects similar dynamics in the next quarter.

Apple is on track to post three straight quarters of revenue declines, not seen since 2016, MarketWatch notes. It was the only major technology company to warn in its first-quarter guidance that revenue would continue to decline. For the third time in a decade, the company’s profits have fallen for several quarters in a row.

Apple’s smartphone revenue in the second fiscal quarter rose to $51.33 billion from $50.57 billion a year earlier. Wall Street had forecast revenue of $48.9 billion, but the company reported record revenue from iPhone sales.

In the last quarter, Apple added support for sending emergency messages via satellite in six new countries – the service is now implemented in 12 countries around the world.

Apple recorded a sharp decline in PC demand, which was expected given Gartner’s data that the global PC market in the first quarter of 2023 was down 30% compared to the same period in 2022. Cash receipts from sales of Macs in the fiscal second quarter fell to $7.17 billion (against market expectations of $7.7 billion)—from $10.44 billion a year earlier.

The wearables, accessories and home devices business fell from $8.81 billion to $8.76 billion (vs. a forecast of $8.5 billion).

iPad sales revenue in the January-March 2023 period fell to $6.67 billion from $7.65 billion in the same period in 2022 (analysts expected $6.7 billion).

At the same time, revenue from the App Store, Apple Music, Apple Pay and iCloud services increased in the fiscal second quarter from $19.82 billion to $20.91 billion year over year.

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