Ajit Karn
Apple’s growth in the first quarter of 2023 was hurt by foreign currency constraints, pandemic-affected supply chains, and the Russia-Ukraine conflict, the results of which were published on Friday. Despite lower-than-anticipated results, Apple CEO Tim Cook stated that the business had surpassed two billion active devices and earned the highest revenue from services in its history.
Here are the most important lessons from Apple’s first-quarter financial results:
Drop in iPhone sales
In comparison to the previous year, Apple’s sales decreased by 5% to $117 billion. According to reports, this decline is more severe than anticipated by analysts. The decline in sales has been mostly linked to the pandemic-related restrictions imposed on Apple’s production plants in China during the holiday season, which hampered the availability of the new iPhone.
Since the December quarter, which includes the holiday season, is viewed as Apple’s greatest sales driver of the year, the decline is significant. This marks the first quarterly decline for Apple in four years. 2015 was the first year it failed Christmas sales predictions.
Two billion operational units
One of the highlights of the most recent report was Apple’s continued domination as the most popular electronic gadgets in the globe. Cook said that during the December quarter, Apple registered more than 2 billion active devices around the world, adding another feather to its cap.
In 2022, Apple also had the largest profit share from global smartphone sales. Bloomberg said that in 2022, smartphone sales accounted for 85% of the tech titan’s operating profit and 48% of its revenue.
In contrast, Apple sold up to two million iPhones in India during the fourth quarter of 2022. The brand which is tremendously popular saw an augmentation of 18 per cent on a quarter-on-quarter basis. According to a survey by CyberMedia Research, the iPhone 14 series, which was introduced in 2022, recorded a 59 percent market share in India during the fourth quarter of 2022, while the iPhone 13 series won 32 percent market share.
Apple and job cuts
This year some of the top tech companies in mass layoffs. However, Apple appears to have avoided the flood of layoffs caused by the slow global economy.
Regarding layoffs, Cook stated that Apple has been managing expenses very carefully and has reduced hiring in certain departments. It continues to hire in other sectors, however. “I view layoffs as a last resort kind of thing,” he said. “One should never say never. We want to manage costs in other ways to the degree that we can.” This year, Cook had taken a wage cut of more than 40 percent.
Tim Cook Regarding
Cook stated in the post-results earnings call that Apple performed “quite well” in India through Covid and that the business is “even more positive” on the growing market. According to him, this is why the company has been investing and devoting considerable resources to retail in India, particularly through its online store.
Cook disclosed, in response to an analyst’s question, that Apple India achieved a quarterly revenue record and double-digit year-over-year growth. Despite the difficulties, he stated, “we are quite pleased with our performance.”
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Cook acknowledged that India is an enticing market for Apple and its current priority. The company launched its online store in India in 2020, and the CEO disclosed that Apple Retail will also be brought to the country. “We place significant attention on the market. “Financing options and trade-ins have done a lot to make things more affordable and provide consumers additional purchasing options,” Cook added.
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Cook’s current remarks come in the aftermath of recent rumours indicating that Apple is preparing to relocate some iPhone production outside of China, to nations like India and Vietnam. This has been viewed as Apple’s strategy for diversifying iPhone production, and India was expected to benefit significantly from this decision. Apple is also readying for a retail push and is opening stores in Mumbai and Delhi soon.
