Apple forecasts another drop in revenue

Apple Inc on Thursday forecast that revenue would fall for a second quarter in a row but that iPhone sales were likely to improve as production had returned to normal in China after COVID-related shutdowns.

While striking an optimistic tone on sales of services and iPhones, CEO Tim Cook said an uncertain economy is expected to hurt categories like gaming and digital advertising.

Overall, Apple’s leaders tried to reassure investors that despite the firm being buffeted by up-and-down sales cycles for its flagship device and vulnerable to supply chain shocks, the world’s largest listed company remains on a steady – if somewhat slower – rise. And in the immediate aftermath of some of the company’s worst financial results in years, at least some investors seemed to give Cook the benefit of the doubt, imposing only modest share price declines.

For the just-ended quarter, Apple’s profits missed Wall Street expectations for the first time since 2016, dragged down by iPhone sales falling for the first time since 2020.

The stock was down about 2% after Chief Financial Officer Luca Maestri said that iPhone sales were likely to improve compared with the quarter ended Dec. 31. That did not quite erase a 3.7% gain during regular trade.

Amazon.com and Alphabet also fell about 4% after reporting results. They also had gained during regular trade. Reuters