Apple Q1 revenue: iPhone down 8% YoY to $65.8B, Mac down 29% YoY to $7.7B, iPad up 30% YoY to $9.4B, and Wearables, Home, and Accessories down 8% YoY to $13.5B
Follow your favorite stocksCREATE FREE ACCOUNT — Apple missed expectations for revenue, profit, and sales for many of its lines …
CNBC Kif Leswing
Context & Ripple Effects
Apple’s Q1 report marks a broad hardware slowdown outside iPad, with the largest product line declining alongside Mac and wearables. Later 2023 results show that the pressure was not evenly distributed: Mac revenue remained sharply lower in Q2, while iPhone returned to growth in Q2 and Q4.
The subsequent reporting arc also shows a reversal in the categories that lagged here: Mac and iPad both grew in late 2024, while wearables, home, and accessories still declined. That makes the quarter a useful baseline for Apple’s uneven product-category recovery.
First-order effects
- Apple enters the quarter with lower iPhone, Mac, and Wearables, Home, and Accessories revenue, while iPad is the only named category posting double-digit growth.
- The 29% Mac decline makes Macs the most pressured of Apple’s reported hardware lines in the quarter, despite iPad’s 30% increase.
Second-order effects
- Apple’s later Q2 results showed iPhone growth returning while Mac revenue stayed down, concentrating the company’s near-term hardware weakness in computers rather than across every device category.
- The divergence between iPad growth and Mac weakness makes Apple’s tablet and computer businesses move on separate demand cycles, rather than as a single personal-computing segment.
Third-order effects
- Apple’s later results point to a portfolio in which recovery occurs product by product: iPhone and iPad can recover while wearables remain weak and Mac performance lags.
- If that pattern persists, Apple’s growth profile will depend less on synchronized hardware upgrades and more on balancing revenue across distinct device categories.
The trend: Apple’s quarterly hardware results show an increasingly uneven recovery, with each device category following its own demand cycle.
Related: Revenue per active device · Apple · Apple Q2 revenue report · Apple Q4 revenue report · Apple Q4 2024 revenue report
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Discussion
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@lisamateotv
Lisa Mateo
on x
Apple blames a poor holiday quarter...it's worst in 4 years...on supply chain issues and a softening economy. https://www.bloomberg.com/...
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@bdsams
Brad Sams
on x
Thoroughly enjoying Apple is doomed Twitter when the company made over $100b in revenue.
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@anthony
Anthony DeRosa
on x
Apple earnings: MISS on top and bottom Apple's overall sales for the holiday quarter were about 5% lower than last year's, the first year-over-year sales decline since 2019. $AAPL https://www.cnbc.com/... https://twitter.com/...
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@neilcybart
Neil Cybart
on x
Apple's granular 1Q23 results: - iPhone revenue: $65.8B (my estimate: $70.8B) - Services: $20.8B (vs. my $20.1B) - Mac: $7.7B (vs my $7.7B) - Wearables / Home: $13.5B (vs. $16.6B) - iPad: $9.4B (vs. $7.9B) Really good iPad results offset weak wearables. iPhone weak on supply.
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@teroterotero
Tero Kuittinen
on x
Apple did with iPhone what Motorola did with RAZR - bet everything on a single, expensive product line that they froze without any meaningful annual changes. There is a LOT riding on the AR glasses now.
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@caro_milanesi
Carolina Milanesi
on x
3 factors impacting Apple's performance: - currency - COVID related supply constraints on iPhone14 and 14Pro - macro-economic environment. We are thoughtful and deliberate and we manage for the long-term says @tim_cook #AAPL
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@rsgnl
Joe Rossignol
on x
Apple's Q4 2022 revenue is down 5% compared to the year-ago quarter — worse than the average 2% forecasted. First quarter with a decline since before the pandemic.
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@divestech
Dan Ives
on x
Street was fearing a negative Apple conf call...yet demand holding up firmer than feared. Services showing rebound which is key. Clearly some wild cards but this is not an Cupertino backing down on demand front. When Cook talks everyone listens. A masterpiece conf call for tech.
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@divestech
Dan Ives
on x
Big Tech calls from Apple, Amazon, and Alphabet painting a much different picture of demand environment than the tech bears were hoping for. Caution in the air BUT sounds more like soft landing backdrop. Many yelling fire into a crowded theater-tech eps season better than feared
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@rsgnl
Joe Rossignol
on x
This is not concerning to me. Pandemic-induced demand that sent Apple's revenue skyrocketing is probably slowing and the iPhone 14 Pro faced significant supply constraints due to pandemic issues in China. Apple is expected to return to growth this year. Extremely rare miss!
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@patrickmcgee_
Patrick McGee
on x
Biggest question for earnings - which CFO declined to answer, saying to wait for the call - is what demand is like YTD. the ~8% iPhone shortfall from December quarter is either lost forever, or is made up for from Jan-March. Stock reaction will be determined by that info. https:/…
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@patrickmcgee_
Patrick McGee
on x
Total revenue in the quarter fell 5.5% to $117.2bn, below forecasts of $121.1bn, according to Refinitiv. Analysts had been pricing in a 2% decline after Apple warned of supply chain disruptions in November. Net profits fell 13.4% to $30bn, below forecasts of $31bn.
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@neilcybart
Neil Cybart
on x
Apple Guidance: 2Q23 revenue growth will be similar to December quarter. If I heard that correctly, that is weak guidance.
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@greengart
Avi Greengart
on x
This terrible, very bad quarter for @apple meant that it only earned about $30 billion in profit over the past three months. Apple is doomed.
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@neilcybart
Neil Cybart
on x
iPhone channel inventory ended the quarter below Apple's target range. No surprise there given that iPhone revenue figure. $AAPL
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@patrickmcgee_
Patrick McGee
on x
For context: before Covid hit “iPhone City,” analysts were forecasting $128.5bn in @apple revenue, versus $123.9bn the year before. Actual revenue fell 5.5% to $117.2bn.
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@domsplaying
Dom
on x
Rough quarter for Apple. 5% was largest quarterly revenue decline since 2016. First YoY sales decline since 2019. Missed analyst estimates for 1st time in ~ 7 years. Strong dollar, production hiccups & macro pressures. Tough for consumer tech right now. https://www.cnbc.com/...
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@copernicus2013
Igor Schatz
on x
Apple is expected to say its sales fell 2% in the December quarter, as the iPhone maker contended with manufacturing disruptions in China https://www.wsj.com/...
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@drbarnard
David Barnard
on x
@iansherr I missed the first part of the call, did Apple make is clear that Q1 2023 had an extra week compared to Q1 2022? The 5% decline YoY is actually worse than it appears. https://twitter.com/...
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@benbajarin
Ben Bajarin
on x
Apple's store foot traffic to demand model has to be one of its strongest competitive advantages in predicting demand.