Apple’s Stock Takes a Hit After Revenue Falls For iPhone and Other Hardware

Apple’s stock dropped by 3% on Friday morning after the company said in its earnings report for the third quarter that sales of its major products were down from the same time last year. According to the report, sales of the iPhone, Mac, and iPad went down compared to the previous year, leading to a 1% drop in sales overall.

Media members had the opportunity to speak with Tim Cook, the CEO of Apple, at a viewing area for new products during the Worldwide Developers Conference (WWDC) held at the Apple Park campus in Cupertino, California on June 5, 2023.
Josh Edelson | AFP | Getty Images

Even so, Apple’s earnings per share were $1.26, which was more than the $1.19 that analysts from Refinitiv thought it would be. Also, sales were slightly higher than expected, coming in at $81.8 billion instead of $81.69 billion.

During the earnings call on Thursday, when CFO Luca Maestri said that sales would be about the same in the next quarter, Apple’s stock went down. But Maestri was also optimistic about the future. He said that iPhone sales would go up after dropping by 2% in the June quarter and that the company’s services division would grow even more in the next quarter.

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