Apple’s share price has started to rebound after falling sharply, as the company shared details of its first revenue fall in years on Wednesday.
Apple’s quarterly earnings were reported yesterday, with the company suffering its first reduction since 2019. AAPL suffered, falling more than 3% in pre-market trading on Friday.
Recent checks show that Apple’s shares are starting an upward trend, however. At the time of publication a share was selling for $151.94, up from $147.88.
Going up
Apple was already expected to report relatively poor earnings for the quarter that ended December 31, 2022, but Yahoo Finance (opens in new tab) suggests that investor nerves may have been frayed by the response Apple put out.
A quarterly earnings call including CEO Tim Cook and CFO Luca Maestri saw the pair use some variation of the phrase “challenging economy” seven times, the outlet notes.
To give context, Apple posted revenues of $117.1 billion versus the $121.1 billion expected with iPhone revenue particularly hard hit — $65.7 billion versus $68.3 billion expected.
Apple blamed supply chain issues as one of the reasons for relatively poor iPhone performance, and it might have a point. Customers couldn’t buy its best iPhones for a period thanks to ongoing issues at a Foxconn plant in China.
The newly-released iPhone 14 Pro and iPhone 14 Pro Max were hit hardest, with devices hard to come by in Apple Stores around the world.
Analysts had already warned that Apple’s earnings could see it post its first top-line decline in years, and so it came to pass. But the initial share price shock seems to be easing, with prices working their way north this morning.
Investors may well be buoyed by the fact that Apple’s vital Services business continues to grow, raking in $20.7 billion versus the $20.4 billion that was previously expected of it.
Investors and Apple alike will no doubt hope that things improve across the board ahead of its next quarterly earnings report.
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