On Thursday, Apple missed target revenue and profit, marking its first decline in three-and-a-half years due to iPhone delivery issues. Its stock price rose by 3.71% to $150.82 per share on February 02. However, it is expected to drop by -3.22% to $145.97 apiece in the upcoming session.
The earnings per share of Apple went up to $1.88, missing analysts’ expectations of $1.94. It is higher than the previous $1.29 figures. Furthermore, the revenue increased to $117.20 billion but did not hit the estimated $121.88 billion. Still, it is above the former $90.10 billion data.
The significant supply chains in China were disrupted, causing a delay in iPhone deliveries. Additionally, it highlighted the company’s dependence on China’s manufacturing. As a result, Apple recorded $65.78 billion in iPhone sales, declining by 8.00% compared to the previous year.
In addition, its sales weakened in China by 7.00% to $23.90 billion in December.
According to analysts, the business should improve when the Chinese economy reopens since a fifth of the iPhone sales come from China.
Also, its net profits were $30.00 billion, which was 13.40 cents lower. It somewhat missed the forecasts by a bit.
Moreover, the iPhone maker notified that a strong dollar could strip 10.00 percentage points off revenue. It would be equivalent to a $12.00 billion loss. The real hit was around 8.00 percentage points.
Tim Cook Took a 40% Pay Cut Anticipating Weak 2023
CEO of Apple, Tim Cook, had a pay cut of 40.00% amid an anticipated rough 2023 for the Cupertino giant. The company adjusts how they will give his compensation based on his recommendation. His target total compensation is $49.00 million. It consists of $3.00 million for his salary, a $6.00 million cash incentive, and equity awards of $40.00 million in 2023.
Last March, Apple held an advisory shareholder poll on executive pay. The results showed that 6.21 billion votes agreed on the package while 3.44 billion votes did not.
The compensation committee considered the shareholder feedback, Apple’s performance, and Cook’s recommendation in adjusting his compensation.
