Apple revenue falls 5% as active devices pass two billion

Apple reported a 5% fall in quarterly revenue to US$117.2 billion on 2 February, as its holiday-quarter results showed lower iPhone and Mac sales alongside record Services revenue.

The results cover Apple’s fiscal first quarter, which ended on 31 December 2022. Diluted earnings per share were US$1.88, compared with US$2.10 a year earlier. Net income fell to US$30.0 billion from US$34.6 billion.

Photo: Apple logo on an iMac. © Håkan Dahlström, 2010 (CC BY 2.0, via Wikimedia Commons). Resized and cropped.

iPhone and Mac sales fall

Apple’s financial statements show iPhone revenue of US$65.8 billion, down from US$71.6 billion a year earlier. Mac revenue fell to US$7.7 billion from US$10.9 billion, while Wearables, Home and Accessories brought in US$13.5 billion, against US$14.7 billion.

iPad revenue rose to US$9.4 billion from US$7.2 billion. Services reached US$20.8 billion, up from US$19.5 billion, which Apple described as an all-time revenue record.

The reporting period ended before January’s M2 Pro and M2 Max Mac announcements.

Currency and the installed base

Chief financial officer Luca Maestri said total revenue grew on a constant-currency basis despite a difficult economic environment and significant supply constraints. That currency-adjusted assessment doesn’t change the decline in Apple’s reported US-dollar revenue.

Chief executive Tim Cook said Apple’s installed base had passed two billion active devices during the December quarter. Apple also reported an all-time high for the installed base in every major product category. The milestone counts active devices, not individual customers.