“Apple” announced that it had achieved sales and profits below Wall Street’s expectations, affected by weak “iPhone” sales, after the closure related to the “Covid” pandemic in China disrupted the production of the company’s best-selling products.
Apple shares fell 5 percent after the results were announced.
The company’s sales fell 5 percent to $117.2 billion and declined in every part of the world during the quarter ended Dec. 31.
Sales fell from each of the company’s product categories, but rose for services and iPads.
Earnings per share were $1.88, the first time Apple reported earnings below Wall Street expectations since 2016.
Analysts had expected sales of $121.1 billion and earnings of $1.94 per share, according to Refinitiv data.
Apple Chief Executive Officer Tim Cook told Reuters that the production disruption that hit the company during the first quarter of the fiscal year has ended.
During the first quarter of the fiscal year, Apple faced a wave of challenges that prompted Wall Street to expect sales to decline.
Among the main reasons for this was supply chain pressures at a production facility in Zhengzhou, China, which affected the production of the “iPhone 14 Pro” and “Pro Max” phones.