Tech giant Apple recently released its quarterly earnings report, with results falling short of analysts’ predictions. There is no question where Apple places the blame for its lackluster earnings — during the earnings call, CEO Tim Cook and CFO Luca Maestri mentioned a variation of the phrase “challenging economy” seven times.
Forbes reports that on Thursday, Apple released its quarterly earnings report which fell short of analysts’ predictions. The company’s stock fell in after-hours trading based on the earnings, but are positive in morning trading. Apple’s revenue of $117.2 billion was down five percent from the same time last year and represents its first year-over-year decline since 2019. The company made $30 billion in profit in the quarter, or $1.88 per share, an 11 percent decrease.
Apple CEO Tim Cook waves as he arrives for the Economic Summit held for the China Development Forum in Beijing (NG HAN GUAN/AFP via Getty Images)
The underwhelming earnings report was brought on by a drop in iPhone sales, which made up the majority of product revenues and totaled $65.8 billion in the quarter, down eight percent from the same time last year. During the quarter, the company made $20.8 billion from services like iCloud and Apple TV+ and $6.4 billion from products. The release of the iPhone 14 contributed to the drop in product sales, but Apple executives seemed to blame external factors. During the call, Apple CEO Tim Cook and company CFO Luca Maestri used a variation of the phrase “challenging economy” seven times.
The decline in demand for the iPhone 14 and production problems associated with the coronavirus in China put pressure on the company’s supply and significantly slowed the company’s growth. According to Bank of America analyst Wamsi Mohan, given that Apple is rumored to be planning to release a mixed reality headset later this year, the company’s stock could be a “tale of two halves in 2023” and that shares may rise as a result of “new product momentum,”
Tim Cook suffered a 40 percent reduction in his compensation package this year, bringing his target salary down to $49 million, which includes $9 million in salary and bonuses and $40 million in stock awards. Forbes estimates Cook’s net worth to be $1.8 billion.
Read more at Forbes here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan