Apple Revenues Fell 5 Percent in Q4

Apple announced that it earned a net income of $30 billion on revenues of $117 billion in the quarter ending December 31. Both fell short of the same quarter one year ago, with net income down 5.5 percent and revenues down 5 percent year-over-year (YOY).

This is Apple’s largest quarterly revenue decline since 2016 and its first year-over-year sales decline since 2019.

“As we all continue to navigate a challenging environment, we are proud to have our best lineup of products and services ever, and as always, we remain focused on the long term and are leading with our values in everything we do,” Apple CEO Tim Cook said. “During the December quarter, we achieved a major milestone and are excited to report that we now have more than 2 billion active devices as part of our growing installed base.”

One year ago, Apple said it had 1.8 billion active devices.

The iPhone remains Apple’s largest business by far, with $65.8 billion in revenues in the quarter, a decline of 8.2 percent YOY. The iPhone accounted for 56 percent of Apple’s total revenues.

Services was Apple’s second biggest business in the quarter, with $20.7 billion in revenues, a gain of 6.4 percent and what Apple called “an all-time revenue record.” Wearables delivered $13.5 billion in revenues, down 8.3 percent. iPad accounted for $9.4 billion in revenues, up an impressive 29.6 percent. And the Mac brought up the rear with $7.7 billion in revenues, down a whopping 29 percent and due, in part, to a poor YOY comparable.

Mr. Cook said that the strong U.S. dollar, production issues in China, and a poor economy all contributed to the quarterly decline. As it has since the beginning of the pandemic, Apple did not provide guidance for the current quarter.

“We’re recognizing the environment that we’re in is tough,” Mr. Cook added. “And so we’re cutting costs, we’re cutting hiring, [and] we’re being very prudent and deliberate on people that we hire.”