Slow iPhone sales make for an unusually ugly quarter for Apple—and shows that even tech’s superstar is reeling from the sluggish economy - Fortune

Revenue successful the fiscal archetypal 4th amounted to $117.2 billion, the institution said successful a connection Thursday. That compared with Wall Street projections of astir $121.1 billion. The shares fell successful extended trading.

The results amusement that Apple hasn’t been capable to dodge the tech slowdown afflicting galore of its competitors. Demand for smartphones and computers has slumped successful the past year, and Covid-19 restrictions successful China added to Apple’s woes during the vacation income period. Timing was different issue: The institution didn’t motorboat caller Macs and HomePods until caller weeks, missing the extremity of the archetypal quarter.

Earnings came successful astatine $1.88 per share, compared with an mean estimation of $1.94 per share. The Cupertino, California-based exertion elephantine didn’t supply a gross outlook for the 2nd quarter, continuing an attack it adopted astatine the commencement of the Covid pandemic successful 2020.

Apple shares had closed up 3.7% astatine $150.82 successful New York. They person gained 16% this year.

Chief Executive Officer Tim Cook cited a “challenging environment” successful the statement. “We stay focused connected the agelong term,” helium said.

Apple generated $65.8 cardinal from its flagship product, the iPhone, missing the estimation of $68.3 billion. That besides represents a diminution the $71.6 cardinal that the merchandise brought successful a twelvemonth earlier. While the latest iPhone was a much important leap than the erstwhile version, the factories producing the fashionable Pro models successful China were shuttered for respective weeks during the 4th owed to pandemic restrictions. 

The institution made $7.74 cardinal from the Mac, good abbreviated of the $9.7 cardinal estimate. That’s besides a important driblet from $10.9 cardinal a twelvemonth ago.

It was a pugnacious year-over-year examination fixed that Apple launched a revamped MacBook Pro enactment successful the erstwhile vacation period. This clip around, it didn’t update the MacBook Pro and Mac mini models until the existent quarter.