The Morning After: Apple’s record service revenue couldn’t make up for falling hardware sales
After the last few years of nonstop growth, Apple reported revenue of $117.2 billion for its first fiscal quarter, which is five percent down year over year, marking the first time Apple's revenue has dipped since 2019.
That said, the company set a revenue record of $20.8 billion in its Services business and hit over two billion active devices globally. CEO Tim Cook said three things hit revenue: the "challenging macroeconomic environment," foreign exchange issues and COVID-related supply constraints that led to delays in the ship times of iPhone 14 Pro and Pro Max models. Anecdotally, we’ve heard from several people that ended up canceling iPhone orders over lengthy delays.
It reflects a slowdown across most of the tech industry, with a mixture of lower revenues, decreased profits and general growth slowdown across Meta, Microsoft and Google owner Alphabet.
– Mat Smith
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* This article was originally published here
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