Apple Inc (NASDAQ:AAPL) shares fell more than 3% just after the close on Thursday after the tech giant reported fiscal 1Q 2023 results which missed on both revenue and earnings, with record services revenue a bright spot.
For the quarter ended December 31, 2022, the company achieved revenue of $117.1 billion, below the Street’s expectation of $121.1 billion and down from the $123.9 billion posted in the year-ago quarter.
Adjusted earnings per share fell from $2.10 in 1Q 2022 to $1.88 in the quarter, below the expected $1.94.
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iPhone revenue came in at $65.7 billion, below the expected $68.3 billion and a significant decline from $71.6 billion posted in 1Q 2022.
Mac revenue was $7.7 billion, short of the forecast $9.72 billion and the $10.8 billion achieved in the year-ago quarter.
iPad revenue exceeded expectations at $9.4 billion, compared to the $7.7 billion expected and $7.2 billion in the same quarter in 2022.
Services revenue also modestly outperformed at $20.8 billion, compared to $19.5 billion in the year-ago quarter and ahead of the forecasted $20.4 billion.
Apple CFO Luca Maestri highlighted the company’s services business revenue, which achieved an all-time record this quarter.
“And in spite of a difficult macroeconomic environment and significant supply constraints, we grew total company revenue on a constant currency basis,” Maestri said.
“We generated $34 billion in operating cash flow and returned over $25 billion to shareholders during the quarter while continuing to invest in our long-term growth plans.”
The company’s board of directors also declared a cash dividend of $0.23 per share, payable on February 16, 2023, to shareholders of record as of the close of business on February 13, 2023.
Apple’s shares were down 3.3% shortly after the release of its earnings, trading at about US$145.92.
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