Apple’s Q4 2022 financial results showed a 5% YoY decline in revenue to $117.2 billion and a 13% YoY decrease in net income to $30 billion. The company’s performance in the Chinese market, a crucial market for Apple, also fell short with sales of $23.9 billion, down 7% YoY. Following the release of the financial report, Apple’s stock price dropped more than 3% in after-hours trading.
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Apple’s biggest rival Samsung was also impacted in the fourth quarter, with its chip business leading to a 69% drop in operating profit. Apple CEO Tim Cook attributed the company’s decrease in performance to the appreciation of the US dollar, which led to a devaluation of sales in other currencies and pandemic-related factory production issues, causing shortages of the iPhone 14 Pro and Pro Max.
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The global smartphone market saw its lowest shipments in a decade due to a sharp drop in consumer demand, inflation, and macroeconomic uncertainty. Despite these losses, Apple recorded an 85% share of the global smartphone market’s operating profit in 2022, with 18% of global smartphone shipments and 48% of business revenue for the year. In Q4 2022, Apple shipped 70 million iPhones worldwide, up from 49.2 million in the previous quarter but down from 81.5 million in Q4 2021.
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Unlike its tech giant peers, Amazon, Microsoft, Google, and Meta, Apple has not announced significant layoffs. Cook stated in an interview that layoffs are a last resort for the company and that they aim to control costs in other ways.