Tech products tend to be one of the top popular gifts for the holiday shopping season, with Apple being one of the most popular brands. The company sold $71.6 billion worth of iPhones last year. That’s enough money to be a Fortune 50 company on its own. So what happens when that demand collapses?
Apple will report its first-quarter earnings on Thursday, covering sales during the holiday shopping season that just ended. and likely to crack.
Mobile phone and computer makers have seen their sales plummet from pandemic highs, and while the holidays tend to be a popular time to buy tech gadgets, this past holiday Shopping season isn’t all that great. Global smartphone shipments fell 18% year-over-year, the industry’s largest ever decline, according to an IDC study. PC shipments, on the other hand, plummeted another 28% year-over-year.
Now, Apple watchers are learning what that means for iPhones and Macs. Analysts already expect earnings to drop to $1.94 per share on average, according to . Survey published by Yahoo Finance, down more than 7% from the same period a year ago. Meanwhile, sales are expected to fall about 2% to about $121.6 billion.
Apple and Wall Street analysts alike have warned of a slowdown in production in China caused by the COVID-19 lockdown that ended late last year, so this isn’t all that surprising.Especially when many would-be iPhone 14 Pro owners increase waiting time Alternatively, look for devices starting at $999 (£1,099, AU$1,749).Here at CNET, we’ve heard that so many people need help finding them, so we’ve published a guide on how to find Amid many shortages.
Now that buying an iPhone has become as easy as buying directly from Apple and having it shipped the next day, the question analysts and investors are asking is, what are people who were previously unable to buy an iPhone waiting for? Or did you just give up and buy it? competitor.
“December pain = March profit?” Evercore analyst Amit Daryanani said in an investor note on Monday.Evercore also said data on luxury goods sales in China showed that, in addition to readily available supplies, many people fear of a greater recession May this year exaggerated“From January onwards should be stronger than usual given unmet demand.”
Apple did not respond to a request for comment before its earnings.
As economic uncertainty continues, industry watchers worry about what will happen to the company’s employees if people buy enough iPhones to power Apple.Nearly every tech giant so far introduced layoffsblaming it in part for feverish hiring during the pandemic.
Apple has a hiring freeze in some areas, and Apple CEO Tim Cook volunteered. reduce his potential future rewards.
Analysts so far don’t seem concerned that Apple could be in a similar position to Amazon. 18,000 jobs lostMicrosoft, Laid off 10,000 people, or Meta and Google combined laid off another 23,000 people. Overall, an estimated 235,596 people lost their jobs in the tech industry over the past year. According to Layoffs.fyiindustry tracker.
After discussing how the short-term supply could hit Apple’s financials in the short term, Oppenheimer analysts said in a note late last year that they would “make Apple’s ecosystem and its user base profitable.” In terms of Wall Street, it’s that they believe Apple will find ways to make more money from people who have already bought its products. means Apple TV Plus subscription service, for $7 a month. “Our long-term bullish view on Apple remains unchanged.”