Apple Inc., a leading consumer electronics company, failed to meet expectations in their December quarter results, as Apple stock saw a decline, but now things are changing. The company reported earnings per share of $1.88 on revenue of $117.2 billion, falling short of the projected earnings per share of $1.94 on revenue of $121.4 billion as stated by analysts polled by FactSet. Additionally, their earnings saw a decline of 10% while sales decreased by 5% compared to the same period the previous year.
Before the release of the earnings report, industry experts expressed concerns regarding a potential decline in consumer spending on technology products and digital services. Furthermore, Apple faced difficulties in its supply chain due to the COVID-19 pandemic and its impact on its main iPhone factory located in China.
In the official earnings statement, AAPL’s top management(executives) highlighted the bright spots of the results. The CEO, Tim Cook, emphasized a significant achievement for the company, with their active device base surpassing 2 billion units. This encompasses a range of products including iPhones, iPads, Macs, and various other devices.
Apple Stock Dip Following Q4 Earnings Release
In today’s after-hours trading on the stock market, Apple stock saw a decline of 3.9% to reach 144.93. During regular trading hours, the stock had risen 3.7% and closed at 150.82.
The CFO, Luca Maestri, focused on the growth within the company’s services division. He stated, “Our services business achieved a new all-time revenue record of $20.8 billion, despite the challenging economic climate and supply chain difficulties. This resulted in overall company revenue growth on a constant currency basis.”
AAPLs services sector saw a 6% increase in revenue, totaling $20.77 billion in the December quarter. Meanwhile, the hardware division experienced an 8% decrease in revenue, bringing in $96.39 billion.
Apple(AAPL) Sees Decline in iPhone and Mac Sales, But iPad Sales Show Growth
iPhone
In the December quarter, Apple’s iPhone sales dropped by 8% to $65.8 billion, falling short of the expected $68 billion. The smartphone segment accounted for 56% of the company’s total sales in the quarter.
MAC
The sales of AAPL’s Mac computers also saw a significant decrease of 29% to $7.7 billion. Additionally, the revenue from their wearables, home, and accessories unit declined by 8% to $13.5 billion.
iPad
Contrarily, Apple’s iPad business experienced growth, with a 30% increase in sales to $9.4 billion in the holiday quarter.
According to IBD Stock Checkup, Apple stock has a Composite Rating of 54 out of 99. IBD’s Composite Rating is a combination of crucial fundamental and technical metrics used to evaluate a stock’s strengths. The top growth stocks generally have a Composite Rating of 90 or higher.
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