SHARE OF THE WEEK: Apple to reveal second-quarter figures
SHARE OF THE WEEK: After a relatively bullish week for tech results, pressure on Apple to flex muscle as it unveils its second-quarter earnings
After a relatively optimistic week for tech results, Apple is under pressure to flex its muscles when it releases its second-quarter results on Thursday.
Unlike its rivals in Silicon Valley, the iPhone maker has dodged massive layoffs and instead kept a cool head in recent months. In its last quarter, from October to December, Apple’s total revenue fell 5 percent in its first year-over-year decline since 2019.
Apple CEO Tim Cook blames the bad Christmas period on the difficult economic situation, which he says affects everyone.
But it was undoubtedly a major blow to Apple and analysts are predicting a further dip in the second quarter – despite China’s improving supply chain.
Chief Financial Officer Luca Maestri warned of a similar decline between January and March, with sales of iPhones and iMacs dragging Apple down.
The company made money during the pandemic as consumers outfitted their homes with new devices and invested in work-from-home technology.
But this began to fade last year as the dollar rose and China’s zero-Covid policy caused major disruptions at Apple’s factories.
For the three-month period from January to March, analysts predict a 5 percent year-on-year revenue decline for the tech giant.
Research by analysts Canalys showed that iPhone sales in China fell in the first three months of the year.
Apple’s market share was down 3 percent year-over-year, Canalys said.