Categories: Business

With iPhone production problems, Apple records profit decline

With iPhone production problems, Apple records profit decline

Apple reported, this Thursday (2), that it recorded net income of US$ 30 billion in its first fiscal quarter, equivalent to the three months ended in December 2022. The result represents a drop of 13% compared to the same period in the previous year.

The company recorded a gain of US$ 1.88 per share in the period in question, below the projection of analysts consulted by FactSet, which was US$ 1.94.

The iPhone maker also revealed that it had revenues of US$ 117.2 billion in the quarter until December, 5% less than the verified one year before. That metric thwarted analysts’ estimate of $121.4 billion.

Apple CEO Tim Cook attributed the performance to challenges in the production chain, in addition to the uncertain macroeconomic environment. “We estimate that we would have grown with the iPhone without the supply constraints,” Cook said in an interview. “The macroeconomic situation is more difficult to estimate, but it is evident, looking at the numbers, that the wind was against us in the quarter”, he points out.

In November, Apple had already informed that it expected bottlenecks in the production of the iPhone 14 Pro, in the face of the temporary closure of a factory in Zhengzhou, China, due to an outbreak of Covid-19.

The company now has 2 billion active devices, a figure the company called “a significant milestone.” Cook said international growth was strong in the quarter, including in Brazil, India, Indonesia, Thailand and Vietnam.

At 6:54 pm (Brasília time), Apple’s shares fell 3.85% at Nasdaq after hours in New York.

*With information from Dow Jones Newswires

Source: CNN Brasil