Apple announces financial report for its fiscal 2023 first quarter: revenue declines for the first time since 2019

Apple announced its financial report for the first quarter of the fiscal year 2023 (ended December 31, 2022), with quarterly revenue reaching a record $117.154 billion, a year-on-year decrease of 5.5%; net profit was $29.998 billion, a year-on-year decrease of 13.4%; diluted earnings per share were US$1.88, less than $2.10 in the same period of the previous fiscal year; net profit was $20.71 billion, and the gross profit margin was 42.96%. Apple’s revenue, net income, and diluted earnings per share missed expectations, while gross margins were roughly in line with expectations.
Apple iPhone 16

In the fiscal quarter, Apple’s revenue in all regions of the world experienced a year-on-year decline. From the perspective of revenue structure, the revenue of the iPhone business and the Mac business have both declined, both of which are lower than expected. The former fell from $71.628 billion in the same period of the previous fiscal year to $65.775 billion, a year-on-year decrease of 8.2%, and the latter fell from $10.852 billion in the same period of the previous fiscal year to $7.735 billion, a year-on-year decrease of 28.7%.

However, Apple’s service revenue hit a record high for the same period in history, increasing from $19.52 billion in the same period of the previous fiscal year to $20.77 billion, a year-on-year increase of 6.4%. In addition, the iPad business also performed well. Revenue increased from $7.248 billion in the same period of the previous fiscal year to $9.396 billion, a year-on-year increase of 29.7%, exceeding expectations.

Apple CEO Tim Cook said that the number of Apple active devices exceeded 2 billion this quarter, which is a milestone achievement, and will continue to focus on long-term development in a challenging environment. At the same time, Tim Cook said in an interview with the media that he has adjusted his expenditure and recruitment plans and does not rule out the possibility of layoffs, but this is a last resort and he hopes to manage costs in other ways as much as possible.