And it is that the images during the month of November of the revolts in the factories of foxconn It did not bode well for the results of those from Cupertino at the end of the year. And so it has been, because the Californian company has seen both sales and revenue decline, all in a difficult economic context, in which we have seen smartphone sales fall to their lowest level in a decade.
Negative results in the last quarter
Without a doubt, the temporary closure of the Foxconn factories has directly affected Apple’s bottom line. As Tim Cook has stated to shareholders, iPhone sales revenue have fallen more than 8% in the last quarter of the yearbetween the month of September, when the new iPhone 14 arrived on the market, and December 31, so sales have been lower than those registered on the same dates in 2021. These revenues have fallen to 65.8 billion dollars .
In the annual balance, Apple has seen how its income have been reduced by 5.5%, despite the difficult context that the technology market is going through. These are a total of 117.200 million dollars in the quarter, which is the lowest figure since 2019. Apple’s net income has also decreased, 13.4%, to 30,000 million dollars. Of course, there have been other business areas that have recorded record results.
This is the case of Apple’s services division, which includes both its Apple TV+ streaming service and the video game service, which has reached revenues of 20.8 billion dollars, improving the results of the same quarter of the previous year by 6, 4%. In the case of Macs, revenues fell by 28.7%, to 7.7 billion dollars, while the iPad has seen its sales grow, 29.6% until reaching the figure of 9,400 million dollars.
As you can imagine, the keys to this decline in both sales and revenue have to do with many factors. The first of them has been the cFoxconn factories closed temporarily due to COVID restrictions in China. This has reduced the available iPhone stock and therefore it has not been possible to sell as many mobiles as expected. This is an important part of this disappointing result. But so is the macroeconomic context, marked by war and inflation, which has led the market to contract as we have never seen it in the last ten years, undoubtedly a disastrous year for smartphone sales.
More than 2 billion active devices
Despite these results, Tim Cook wanted to boast of a fact that he qualifies as incredible. And it is that Apple already has nothing less than 2 billion active devices worldwide, a figure that is certainly not within the reach of many companies. And it is that the range of products of those of Cupertino is not only made up of the iPhone, but the iPad or Mac undoubtedly have an enormous weight in the participation of these connected devices.
Now what we have to know is if these bad results are going to be something specific, for those Chinese circumstancesor if, as has happened with the rest of the smartphones, these poor results in the sale of smartphones are going to continue as long as the economic turmoil continues to hit the market in the form of uncertainty among consumers.