Apple sales miss estimates on sluggish economy, supply snags

Apple sales miss estimates on sluggish economy, supply snags

Apple Inc. reported a steeper sales decline in its holiday period than Wall Street feared, showing the toll of an economic slowdown and lingering supply snags on what was long one of the tech industry’s most resilient companies.

Revenue in the fiscal first quarter dropped 5.5% to $117.2 billion, the company said in a statement Thursday. That was well short of the average Wall Street estimate of $121.1 billion, and the results sent Apple shares sliding as much as 5.6% in late trading.

The iPhone and Mac were particular weak spots for Apple during the quarter, dragged down by a broader slump afflicting mobile devices and computers. Covid-19 restrictions in China added to Apple’s woes, making it harder to ship enough of the most popular versions of the iPhone. Timing was another issue: The company didn’t launch new Macs and HomePods until recent weeks, missing the end of the first quarter.

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