Apple reported a 5% YoY decline in its released financial result for its first quarter of the fiscal year 2023, marking its first quarterly revenue drop since 2019 and missing Wall Street forecasts.
The Silicon Valley giant hinged the poor performance on the impact of COVID restrictions in China that hampered sales of its iPhone 14 Pro models during the holiday quarter. The phone maker also listed a strong US dollar and global macroeconomic headwinds as factors that stifled revenue growth in the quarter.
For the three months ended Dec. 31, Apple's revenue declined 5.5% on the year to $117.2 billion down 5.49% year over year and lesser than the $121.10 billion estimated, according to Refinitiv.
Per region, Greater China suffered the sharpest revenue decline of all regions in the quarter with a 7.3% year-on-year drop to $23.9 billion. Japan and Asia-Pacific region logged a 5% ($6.8 billion) and 2.8% ($9.5 billion) revenue drop respectively.
Meanwhile, sales of the company's cash cow, the iPhone, decreased 8.2% on the year to $65.8 billion. Total global shipments slipped to 1.21 billion units in 2022, the lowest annual volume since 2013, owing to significantly dampened consumer demand, inflation and economic uncertainty.
Sales of Apple’s other products category, including Mac laptops, AirPods headphones and wearables like Apple Watch were also down year over year.