Apple Sales Experience Biggest Drop Since 2019

Apple Inc experienced a 5% drop in sales in the fourth quarter of 2022 - its biggest fall since 2019.  

Tech companies that boomed at the start of the pandemic have experienced hard blows due to the recent economic downturn, and Apple CEO Tim Cook believes the company navigated through a “challenging environment.” 

He also attributes the sales drop to the Covid-19 disruption in China, where Apple phones are made, which caused a significant decline in supply shortages. Other reasons mentioned include the rising production costs, the war in Ukraine and the pandemic. 

“We know Apple is not immune to it,” he explained in an investor conference call. 

The company reported a drop in sales worldwide. Its top-selling iPhones were down more than 8% and Mac computers down 29% - all of which resulted in an overall decline in the firm’s profits, which fell 13% to $30 billion.  

Globally, the shipment of smartphones also dropped 12% last year, according to Canalys.  

The tech giant forecasted that revenue will continue to drop for a second quarter in a row, but that sales were likely to improve as production began to normalize in China.  

Overall, Cook remained optimistic about the sales of Apple’s services and iPhones. The company’s leaders reassured investors that despite the up-and-down sales cycles and vulnerability to supply chain issues, the world’s largest listed company is on a steady upward trajectory.