Apple reported a decrease in quarterly revenue and profits for the October-December period of 2022, hit by a drop in sales of its flagship iPhones.
The company's revenue was pegged at $117.2 billion, down around 5% from the same period last year, the first quarter of its fiscal year.
The drop in sales has been primarily attributed to the strict COVID restrictions in China, which is a key manufacturing hub for iPhones, and the drastic measures adversely affected Apple's ability to export the iPhone 14 during the key holiday season.
“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. 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,” CEO Tim Cook said.
The company generated $34 billion in operating cash flow and returned over $25 billion to shareholders during the quarter while remaining invested in long-term growth plans, according to CFO Luca Maestri.
Apple is the only US tech giant that has not announced major layoffs in recent weeks.
Google parent Alphabet's revenue of $76 billion and profit of $13.6 billion in its fourth quarter were below what they were in the same period a year earlier, with share prices falling more than 3% in after-market trade.
Meanwhile, Amazon reported an inflation-fueled increase in sales despite the company announcing a massive round of layoffs to balance over-hiring during the pandemic, when business growth spiked. Amazon's sales figures of $149.2 billion in the quarter were better than initial forecasts by analysts polled by Factset, but its profit took a massive hit, falling to near zero.
