Apple posted earnings and revenue below expectations, including missed estimates for iPhone and Mac products, sending shares down in extended trading.

Closing Bell

Apple Misses Estimates

Alright, we do have another earnings alert Apple results and I want to bring back Cheddars, resident earnings expert, Michelle pastel you with a look at these results. Michelle the stock falling in the after hours. Why? And it's not great news for Apple as well. So following on the heels of google alphabet missing, we're seeing Apple also miss on earnings and revenue. Apple's E. P. S coming in a dollar and 88 cents. That's below the consensus estimate of a dollar and 94 cents. And also I think their first miss in almost seven years when it comes to earnings revenue also came in light at $117.15 billion versus the refinitiv estimate of 121.1 billion. Now a couple of interesting things to note about Apple at this time, their sales for the december quarter, which was traditionally the holiday quarter came in 5% lower than the year before. That's the first year over year sales decline since 2019. Now in an interview with CNBC, Apple, Ceo, tim Cook did say there was three main factors to see a decline in apple sales at this point. That includes production issues in china that we had mentioned in the past. Apple did warn that because of covid 19 shutdowns, they were having a hard time manufacturing enough iphone 14 pros in iphone 14 pro maxes. They also mentioned that the dollar has been exceptionally strong. So the international market hasn't been able to purchase these more expensive devices in the long run. And then the one thing that we're always talking about revenue, sorry, the recession, uh macroeconomic climate has stopped people from making these big ticket purchases at this time. Now this is a story that we're hearing across a lot of tech companies and definitely Apple is not immune to all of those changes. You know, it's interesting to me that Michelle is all of these technology companies reporting today falling in the after hours Apple amazon alphabet as well, the parent company of google. But I think the one thing that does differentiate Apple is it's the one tech giant that hasn't announced a round of layoffs. I mean even it's pure Microsoft announced a sizable row of layoffs. Any indication as to how Apple's business might have protected it from extra cost cutting measures that its peers are doing well. You know, Apple out of all these companies is the one company that's not as reliant on digital advertising. I guess you could say Microsoft as well, but they do have an advertising business. And Apple, for the most part hasn't really had to deal with a lot of those digital advertising changes that we're seeing companies like meta which laid off 13% Of its workforce as well as snap, which I think they laid off 20% if I remember off the top of my head correctly. So a lot of these companies are facing those challenges at this time because they're seeing a lot of less investment from a lot of brands and digital marketing. Apple's not really facing that. But you know, you have to see like with iPhone sales, their number one seller and other devices really just crumbling across the board. It's going to only be a matter of time before the company does have to look inward and see is there any redundancies that they have to get rid of? Which is what we're hearing from other tech companies in order to just weather through this recession. I mean, think about it. People will eventually buy these devices again. But if you're trying to decide between consumer goods that you need from a day to day basis or that new, expensive new phone, you're probably gonna lean towards what you need to get food on the table. All right, Michele Castelli a with another great breakdown. I'm Michelle, thank you so much for powering through with us here on closing Bell.