Apple sees another revenue decline, but iPhone sales set to rise as supply woes ease

SAN FRANCISCO - Apple 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-19-related shutdowns.

While striking an optimistic tone on sales of services and iPhones, Apple chief executive Tim Cook said an uncertain economy was expected to hurt categories such as gaming and digital advertising.

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.

Apple's sales fell 5 per cent to US$117.2 billion (S$153.7 billion) and were down in every part of the world in the quarter. Sales from each product category dropped, except for gains in services and iPads. Earnings per share were US$1.88.

During its fiscal first quarter ended Dec 31, Apple faced a wave of challenges that left Wall Street expecting lower sales.

Chief among those were supply chain pressures when Covid-19 lockdowns at a production facility in Zhengzhou, China, slowed production of iPhone 14 Pro and Pro Max devices, both premium-priced models that would traditionally help drive Apple's margins higher.