Apple Q1 revenues fall 5% $117.2bn

Tech giant Apple has announced that its revenues for the first quarter ended 31 December 2022 dropped 5% to $117.2bn (£104bn) down from $124bn (£111bn) in 2021.

The company’s product sales fell to $96bn (£86bn) down from $104bn (£93bn) but its services sales increased slightly to $21bn (£19bn) up from $20bn (£18bn).

Net sales in Europe dropped from $30bn (£27bn) to $28bn (£25bn), a decrease of 7%.

It revealed its sales of iPhones dropped from $72bn (£64bn) to $66bn (£59bn) and Mac sales dropped from $11bn (£10bn) to $8bn (£7bn). However, iPad sales rose from $7bn (£6bn) to $9bn (£8bn).

Earnings per share in Apple also dropped, with basic earnings falling from $2.11 (£1.88) to $1.89 (£1.69) and diluted earnings dropped from $2.10 (£1.87) to $1.88 (£1.68).

As such, Apple’s board of directors has declared a cash dividend of $0.23 (£0.21) per share payable on 16 February 2023 to people with a record of shareholdings on 13 February.

CEO Tim Cook said: “As we all continue to navigate a challenging environment, we are proud to have our best lineup of products and services ever, and as always, we remain focused on the long term and are leading with our values in everything we do.

“During the December quarter, we achieved a major milestone and are excited to report that we now have more than 2 billion active devices as part of our growing installed base.”

CFO Luca Maestri added: “We set an all-time revenue record of $20.8 billion in our Services business, and in spite of a difficult macroeconomic environment and significant supply constraints, we grew total company revenue on a constant currency basis.

“We generated $34 billion in operating cash flow and returned over $25 billion to shareholders during the quarter while continuing to invest in our long-term growth plans.”