The Q1 2023 financial report has been released, showing a continued decline in both Apple’s revenue and net profit.
Continuing its underwhelming performance from the previous quarter, Apple’s revenue for Q1 2023 was $94.836 billion, a 3% decrease compared to $97.278 billion in the same period last year. The net profit was $24.16 billion, a 3% decrease compared to $25.01 billion in the same period last year.
After overcoming the supply chain crisis, Apple CEO Tim Cook continues to attribute the decline in revenue to currency headwinds and the ongoing challenges posed by the macroeconomic environment.
Cook believes that currency headwinds have caused Apple to suffer a revenue loss of over nearly 5%. In comparison to the 3% decline in revenue, he stated, “On a constant currency basis, the majority of our markets are actually growing.”
The fact remains that, apart from Europe and the Asia-Pacific region, Apple faced a year-on-year decline in revenue in other regions. In the Americas, revenue amounted to $37.784 billion, an 8% decrease compared to $40.882 billion in the same period last year. In Greater China, revenue amounted to $17.812 billion, a 3% decrease compared to $18.343 billion in the same period last year. In Japan, revenue amounted to $7.176 billion, a 7% decrease compared to $7.724 billion in the same period last year.
This resulted in an upward trend for iPhone sales among the company’s hardware products. In the first quarter, revenue from iPhones amounted to $51.334 billion, a 2% increase compared to $50.57 billion in the same period last year.
In contrast, revenue from Macs decreased by 31% year-on-year, reaching $7.168 billion. Revenue from iPads declined by 13% year-on-year, amounting to $6.67 billion. Revenue from wearables, home, and accessories decreased by 1% year-on-year, reaching $8.757 billion.
When asked if the current Indian market is similar to China a decade ago, Cook refused to draw too many comparisons, citing the uniqueness of each country.
Statistics from market research firm Counterpoint Research also support Maestri’s statement. In the first quarter, iPhone sales in India grew by 50% year-on-year, capturing a 6% market share. Although the iPhone has yet to break into the top 5 in the Indian market, it holds a leading position in the overall high-end market and the ultra-high-end market , with market shares of 36% and 62% respectively.
Since global smartphone sales reached their peak in 2017, the market has transitioned from high growth to single-digit growth, and quickly entered a period of negative growth.