r/technology • u/Healthy_Block3036 • Feb 04 '23
Apple sales drop 5% in largest quarterly revenue decline since 2016 Business
https://www.cnbc.com/2023/02/02/apple-aapl-earnings-q1-2023.html862
u/Paddlesons Feb 04 '23
Poor Tim Apple.
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u/aykcak Feb 04 '23 edited Feb 04 '23
Everyone has a favourite but this was in my opinion the weirdest dumble from Donald
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u/jeff0106 Feb 04 '23
I like it even more because it's an easy way to show Trump can't admit that he misspoke.
“At a recent round table meeting of business executives, & long after formally introducing Tim Cook of Apple, I quickly referred to Tim + Apple as Tim/Apple as an easy way to save time & words,” Trump wrote.
It's kind of like a who cares, easy mistake sort of moment and he still can't let it go.
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u/aykcak Feb 04 '23
In that category, specifically it would be crazy to choose anything but the one and only Map Sharpie. He has basically reinvented doubling down there. He could have said he misspoke, he could have said he misheard, he could have said someone else misinformed, he could have ignored the whole thing. There were soo many nicely laid out no loss exits for so long but he drove straight ahead into taking a sharpie to a map he has no idea about and then showing the result to the world
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u/seeafish Feb 04 '23
Pretty much all of my friends and I unironically say Tim Apple now. That and covfefe (to mean coffee) are the only things Trump has done for us.
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u/kneel_yung Feb 04 '23
My wife and I still say covfefe unironically to mean coffee, now, too. It's completely lost its attachment to donald trump - its just what we say to be dumb to each other lol
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u/thatvhstapeguy Feb 04 '23
I still think he meant coverage: "Despite all the constant negative press covfefe."
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u/xel-naga Feb 04 '23
Idk, the nuclear speech, the injection of bleach/high powered light are all very funny as well. As an uninvolved I'm looking forward to his next run. It's sure entertaining if you aren't affected.
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u/not_right Feb 04 '23
How about staring straight at the eclipse without glasses?
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u/xel-naga Feb 04 '23
oh man that was a great one too! It's so god damn idiotic. But the face of Fauci with the powered light thing was just great. Oh, Kung Flu was a great name for Covid as well. And who could've forgotten the 4 seasons (landscaping)?
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u/CheRidicolo Feb 04 '23
My favorite was pushing aside the Montenegrin PM to get out in front then puffing up his chest.
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u/aykcak Feb 04 '23 edited Feb 04 '23
It affects you if you are a living creature on Earth. The guy is on the record for saying "the devastation is important to me" when asked which part of the nuclear triad needed improvement
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u/MikeinAustin Feb 04 '23
“Look, having nuclear — my uncle was a great professor and scientist and engineer, Dr. John Trump at MIT; good genes, very good genes, OK, very smart, the Wharton School of Finance, very good, very smart — you know, if you’re a conservative Republican, if I were a liberal, if, like, OK, if I ran as a liberal Democrat, they would say I’m one of the smartest people anywhere in the world — it’s true! — but when you’re a conservative Republican they try — oh, do they do a number — that’s why I always start off: Went to Wharton, was a good student, went there, went there, did this, built a fortune — you know I have to give my like credentials all the time, because we’re a little disadvantaged — but you look at the nuclear deal, the thing that really bothers me — it would have been so easy, and it’s not as important as these lives are (nuclear is powerful; my uncle explained that to me many, many years ago, the power and that was 35 years ago; he would explain the power of what’s going to happen and he was right — who would have thought?), but when you look at what’s going on with the four prisoners — now it used to be three, now it’s four — but when it was three and even now, I would have said it’s all in the messenger; fellas, and it is fellas because, you know, they don’t, they haven’t figured that the women are smarter right now than the men, so, you know, it’s gonna take them about another 150 years — but the Persians are great negotiators, the Iranians are great negotiators, so, and they, they just killed, they just killed us.”
– Donald Trump, Presidential Candidate From a speech delivered in Sun City, South Carolina on July 21, 2015
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u/---Blix--- Feb 04 '23
At a recent round table meeting of business executives, & long after formally introducing Tim Cook of Apple, I quickly referred to Tim + Apple as Tim/Apple as an easy way to save time & words. The Fake News was disparagingly all over this, & it became yet another bad Trump story!
His excuse doesn't even make sense. ☠️
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u/SrryNewAccountWhoDis Feb 04 '23
And the stock is still climbing.
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u/Hybr1dth Feb 04 '23
They're investing even more by integrating the supply chain further, which is expensive as fuck, but very lucrative for many reasons down the road.
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u/demonicneon Feb 04 '23
Funny how we went full circle from owner factories to outsource to now they want owner factories haha
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u/ry3838 Feb 04 '23
That's transitory.
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u/Snoo93079 Feb 04 '23
For real. Anyone who's reads economic news knows that 2020/2021 were huge growth in tech sales and, across the board, we're in a cyclical slowdown. It's not permanent of course, but you can't maintain that type of growth forever.
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u/LandooooXTrvls Feb 04 '23 edited Feb 04 '23
This.
This is the frustrating part because it should be obvious to most people. However, that doesn’t bring clicks to headlines and many people seem incapable of deducing truth from inflammatory headlines.
It frustrates me because the fear mongering doesn’t help the situation at all.
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u/phphulk Feb 04 '23
someone many people seem incapable of deducing truth from inflammatory headlines.
Most people don't give a shit
It frustrates me because the fear mongering doesn’t help the situation at all.
What situation? Apple sales?
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u/maleia Feb 04 '23
I feel like they probably mean the broader scope of the economy and people's largely uneducated views about it.
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u/LandooooXTrvls Feb 04 '23 edited Feb 04 '23
By situation I’m specifically referring to the large sell-off and layoffs we’ve seen in tech. I think there will be negative consequences felt by the economy with these lay-offs and belt tightening.
I wasn’t specifically referring to Apple, albeit this is a thread about Apple.
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u/Interesting_Ghosts Feb 04 '23
Exactly. All this is relative. Like the stories about “huge layoffs at facebook!!!” While failing to mention facebook doubled their headcount in 2020/2021
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u/ShiraCheshire Feb 04 '23
I'm having to leave my current job because of this. They hired a ton of people because covid was a big boon for them, and now they're cutting people as much as possible. My hours are now less than half of what they were a year ago and I'm having to search for a new job.
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u/Interesting_Ghosts Feb 04 '23
That sucks. Hope you find a new one soon. Fortunately we have the lowest unemployment since the 1960’s right now. So finding a new job shouldn’t be too difficult hopefully.
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u/Baykey123 Feb 04 '23
When eggs cost $8 a dozen and rent is increasing, people think twice about a new iPhone
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u/DeathSpiral321 Feb 04 '23
Also, smartphones haven't really changed over the past 10 years or so. What's the point of buying a new device with a higher number in the name, only for it to do exactly what my current device does?
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u/cas_999 Feb 04 '23
Got an xs max (the first big notched iPhone) and it’s 512gb. I’m not sure what the new iPhones can do that mine can’t that I’ll actually use. I mean the tech gets better in a ton of ways no doubt and it’s pretty incredible but.. from day to day this old thing runs everything about the same. Does everything I need it to and probably 99% of everything most people do w their phones. It also takes photos just fine. No I don’t need 3 cameras and LIDAR. It’s cool but idk when I’d use it.
Not sure when I’ll ever get a new phone. And if this one breaks I’ll probably just buy it again used or refurbished off eBay.
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u/jessepitcherband Feb 04 '23
It’s almost like people have less disposable income or something.
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u/7eregrine Feb 04 '23
Combined with phone peaking and not innovating anymore. Can anyone who is NOT a "phone enthusiast" really tell me why the 14 Super Pro Max Deluxe phone is better then the 13 SPMD? 10% better battery life and a camera 10% better in insert metric here?
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u/chuckmilam Feb 04 '23
Still rocking my 11 Pro here. Not feeling the need to upgrade anytime soon. That new Apple Watch Ultra is pretty sweet, though.
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u/DrDerpberg Feb 04 '23
I'd go even further, everything since they started bringing in curved screens and notches/cutouts has brought very little value to the user while driving prices up like crazy. Take the best phone from 2017 and throw in a modern camera, what's missing?
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u/R1ddl3 Feb 04 '23
High refresh rate display would be the big thing. iPhone prices have not increased since 2017 though.
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u/boondoggie42 Feb 04 '23
It blows my mind that 2020 didn't affect their sales by even 5%, apparently?
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u/saintmsent Feb 04 '23
People who weren’t out of jobs had way more disposable income than before, because they couldn’t spend it on travels
Also, there was a huge demand for computers in general due to WFH
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u/GroceryRobot Feb 04 '23
There was a big push in business to buy remote hardware when Covid started
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u/escapefromelba Feb 04 '23
It's more of a supply issue than a demand one. COVID lockdowns in China have hampered their ability to produce iPhones along with their other products. When I bought an SE a couple months back, it took over a month from ordering it online to actually receive it and no stores within 250 miles had it in stock.
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u/sokos Feb 04 '23
People freaking out about 5% decline is a prime example of why our capitalism failed
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u/maracle6 Feb 04 '23
Are people freaking out? Because their stock went up today.
Does that mean capitalism is succeeding?
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u/jibright Feb 04 '23
It means everyone knew this was going to happen and it wasn’t as bad as people thought
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u/whalesum Feb 04 '23
It means it's all made up for the low low price of people living in poverty
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u/jupfold Feb 04 '23
Excuse me, but nothing other than constant growth will suffice.
Shame on you, you socialist pig.
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u/jessepitcherband Feb 04 '23
It’s like these idiots have never heard the term market saturation.
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u/sokos Feb 04 '23
Nor the idea that when people can't afford to pay for food or a place to live, getting a new apple product might not be so high on their priorities.
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u/Larsaf Feb 04 '23
Fun fact, just a few weeks ago analysts predicted a much larger decline for Apple because of the Covid related production problems in China.
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u/E3FxGaming Feb 04 '23
Apple hopes that it will be difficult for the market to saturate if they lobby against right to repair and sell official repairs that are more expensive than buying a new product.
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u/CyborgKungFu Feb 04 '23
Which one of their products has a repair cost more than the price of a new unit?
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u/cmVkZGl0 Feb 04 '23 •
Capitalism promotes black hole companies. They need to suck up everybody's cash but that ultimately hurts society.
And it's also not even smart. How the fuck are non-essentials supposed to compete with essentials. If everybody is out to nickel and dime you, food and housing comes first, everybody plays second fiddle. But can they even play second fiddle if the essentials are trying to extract the maximum amount? Goodbye diversity of the market and especially ethical players, because ethics cost more.
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u/Kandiru Feb 04 '23
You need to keep prices down or you lose market share. You can only keep raising prices when you have a monopoly.
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u/D0D Feb 04 '23
What people? People freak out all the time for all the reasons. This is a strength not a weakness.
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u/EwoksEwoksEwoks Feb 04 '23
Funny how all these comment sections about company earnings just become the airing of grievances
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u/Class1 Feb 04 '23
Festivus for the rest of us.
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u/threeseed Feb 04 '23
And now as Festivus rolls on, we come to the feats of strength.
This year, the honor goes to Tim Apple.
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u/FeelMyGonorrhea Feb 04 '23
I got a lot of problems with you corporations, and now you're gonna hear about it.
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u/im_always_fapping Feb 04 '23
Funny how all these comment sections about company earnings just become the airing of grievances
and don't even get me started on the size of candy bars...
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u/XXX_KimJongUn_XXX Feb 04 '23
5 percent revenue drop is like a blip but these fools treating it like the the raptures going to send us all to Soviet heaven.
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u/SILENTSAM69 Feb 04 '23
Will there ever be technology posts on this subreddit again? This is always the most off topic subreddit there is.
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u/professor-i-borg Feb 04 '23
And it seems like they didn’t choose to lay off 10000+ people like the other assholes did…
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u/dwerg85 Feb 04 '23
Apple didn’t do the hiring those companies did either. They never do. The claim from the apple podcast I listen to sometimes is that the last time apple did a layoff was when Steve came back in the 90s and was cleaning house. Since then they have been really slow with hiring and really slow with letting people go.
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u/DJanomaly Feb 04 '23
Which is what a lot of companies learned from from the dot com bust twenty years ago. Except not some modern tech companies, apparently.
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u/Parallax1984 Feb 04 '23
Which podcasts?
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u/dwerg85 Feb 04 '23
MacBreak Weekly. Episode 854 specifically is where they talk about that. There's also stuff where Apple doesn't have to cut costs in certain places (like free lunches) because they never had them in the first place.
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u/SuppaCoup Feb 04 '23
oh no, they must be on the edge of insolvency
>100 billion in net income in 2022
oh...
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u/SocksForWok Feb 04 '23
All their newest stuff is really cool and good but their old stuff is also still cool and good enough that you don’t need to upgrade…
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u/Dragroundfly Feb 04 '23
This has seen them prices get so high in some countries no wonder their revenus show signs of slow down. Apple price hikes in times of crisis was probably the biggest insult they could have made to consumers.
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u/AI_observer Feb 04 '23
Well, the whole EU enjoys ridiculous prices on Apple products. That is the 3rd largest economy in the world, 450 million people.
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u/jess-sch Feb 04 '23 edited Feb 04 '23
As an example:
Base model iPhone 14 is 999€ (prices are after tax in Germany). Before tax that’s about 840€, or about $910. While the same phone in the US is $829, or $799 if you’re willing to exchange $30 for a carrier lock. So Germans pay over 13% more for an iPhone before tax.
Not to mention that the US model is actually superior (as long as your carrier supports eSIM, which mine does) because it supports mmWave, which the EU one does not.
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u/GeekFurious Feb 04 '23
And the Pixel 7s sold fairly well so I imagine some people saw the cheaper price with better reviews and headed there.
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u/ktex1968 Feb 04 '23
Maybe because they are making basically identical phones now, no reason to upgrade.
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u/DanielPhermous Feb 04 '23
More likely it's because the iPhone factory shut down due to COVID, had riots due to the COVID lockdown and had strikes because Foxconn wasn't paying the workers bonuses.
I mean, they had a record quarter the one before, so I reckon the idea gone is still selling fine.
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u/rammleid Feb 04 '23 edited Feb 04 '23
5% decline in revenue is minuscule, they still made a shit ton of money. Tim Apple even said said that iPhone revenue would have grown in Q1 2023 had it not been for the supply shortage.
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u/Lamadahbad Feb 04 '23
Apple iPhones r too expensive and in third world they're around twice the price compared to USA, I mean seriously who wants to pay over 1000 dollars every year for a new iphone
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u/Quintavious1017 Feb 04 '23
Why do you need a new phone every year?
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u/Torkzilla Feb 04 '23
Spilled salsa on mine
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u/Charles_Stover Feb 04 '23
2021? Salsa. 2022? Salsa. 2023? Believe it or not, already spilled salsa.
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u/Quintavious1017 Feb 04 '23
Lol. I’m genuinely curious though. I mean having the latest greatest phone was cool in middle school but who needs it
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u/barkerja Feb 04 '23
Replace the word “need” with “want” and you likely answer your own question.
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u/erupting_lolcano Feb 04 '23
Pretty much. My wife and I had perfectly capable iPhone 12s. I wasn’t planning on upgrading, but she wanted the 14 pro. We upgraded, and like literally every other time I’ve upgraded my iPhone, it’s still an iPhone… not much different. Waste of money, tbh.
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u/Mr8BitX Feb 04 '23
Having the latest and greatest phone was cool in middle school because you were in middle school when it was cool to have the latest and greatest phone.
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u/Snot_Boogey Feb 04 '23
Also it seemed like year over year the improvements to each model were more significant back then
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u/Mr8BitX Feb 04 '23
Totally, smart phones were exciting and almost even fashionable in the beginning. I used to be one of those people who would upgrade every year. There was a significant change from one model to the next. Now I’m still on my iPhone 11 and not only do I not feel any need to upgrade, but I’m also happy to no longer have that fomo. It became exhausting, old, and now insignificant. I always read about that the next iPhnoe can do and the changes are so uninteresting that all I can remember from the later 3 (4?) models is smoother scrolling. I’m happy to be over this crap.
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u/ScurvyMcGurk Feb 04 '23 edited Feb 04 '23
Still rocking my 11 and I’m going to get the battery replaced to keep using it for another couple of years, hopefully. I might even still be using my 7 if the lightning port hadn’t gone bad.
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u/UsernameC-137 Feb 04 '23
I just upgraded to 14 pro max coming from a 7. Battery and lightning port were both fucked. But 5 years on one phone is definitely a sensible time for an upgrade.
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u/barkerja Feb 04 '23
A lot of people do when they’re subsidized by carriers with high trade in values. I know way too many people that just pay an endless $20-$30/month for their device on top of the normal carrier plan.
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u/berrymetal Feb 04 '23 edited Feb 04 '23
No one is forcing anyone to upgrade every year. iPhones can last up to 4-5 years and still be good enough
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u/shr1n1 Feb 04 '23
Same as there is market for Hyundais, Kias as well as Mercedes and Porsche. Except that Apple has turned luxury into commodity. Frugal minded and cost conscious use their $1000 phones for 6 years or more getting their moneys worth. I am here rocking a 2013 MacBook Pro for the past 10 years and guess what it was purchased refurbished from Apple @ 20% discount.
Will subsidize my 15 pro max if appeals to me by trading in my 2 year old phone for 60% of value. New iPhone suddenly does not seem so expensive.
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u/saintmsent Feb 04 '23
Changing a phone every year is a concept I only ever see mentioned on Reddit. It may be more common in America with trade-ins and carrier contracts, but here in Europe, even well-off people upgrade every 2-3 years at the most. We recently got a 14 Pro for my wife, and honestly, the difference compared to my 13 Pro is so small that it wouldn't be worth it for me to switch to a new one even if I got it for free
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u/UpgradingLight Feb 04 '23
Most people don’t comprehend it’s not 1k every year if you trade in your 1yo old phone for it.
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u/Cheeky_Star Feb 04 '23
They are diversifying their revenue. They are pushing into the service and streaming ad space. They are still probably one of the best ran company and their brand, still speaks "high Quality".
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u/the_jungle_awaits Feb 04 '23
I thought we were in a recession?
Why is everyone surprised at decreased corporate profit…
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u/tooold4urcrap Feb 04 '23
How do i send one of those reddit-cares don't-off-yourself to all of apple? They must be almost entirely drained of life force after such terrible news.
How fucking stupid is it that five percent less profit for the first time since 5 years ago is a fucking giant news cycle event?
I hate everything.
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u/smokky Feb 04 '23
Keep increasing the price of your phone.
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u/Mr8BitX Feb 04 '23
Customers aren't buying what you're selling? Charge 'em more! It's the cable way.
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u/msew Feb 04 '23
Massive post COVD correction. Massive scary recession possibilities / reality.
Seems fine.
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u/mnlxyz Feb 04 '23
Well with how expensive everything is, how can you expect people to just drop this kind of money on a new phone, especially when they still have an older model that’s about the same
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u/ModsLoveFascists Feb 04 '23
And anyone that has read into knows it’s only because of drop in production not a lowering of demand at the consumer level.
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u/jackishere Feb 04 '23
Still profitable though right? This record profit shit is going to collapse us as a society. Greed will limit innovation even more to squeeze out all the money they can.
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u/Triairius Feb 04 '23
Scaremongering headline that doesn’t really say anything meaningful. It just means sales are 5% slower this quarter.
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u/ArchDucky Feb 04 '23
Is it because they released the same laptop with just a slightly better processor?
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u/ClappedOutLlama Feb 04 '23
INFINITE GROWTH IS UNSUSTAINABLE
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u/SQLDave Feb 04 '23
This is the (or a) root issue. I made a similar comment a bit ago, noting that everyone expects "the line" to be a continuous upward slope. Decades ago I learned about "business cycles". You have up times, and you have down times. That seems to be absolutely unacceptable today. A reduction -- even a reduction in the rate of growth -- is met with horrified reactions.
One commenter took me to task, claiming he'd never seen any business with that attitude.
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u/ClappedOutLlama Feb 04 '23
Because the wealthy have an insatiable hunger for more wealth and power and shriek anytime their portfolios are stagnant.
Billionaires are a disease we must eradicate for the human species to survive.
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u/DepletedWisdom Feb 04 '23
Well the cost of food went up something like 50% on many everyday items in the past 2 years. This 6 or 7% inflation bullshit is not right at all when it comes to food. If they want people to have disposable income to buy unnecessarily expensive shit on a yearly basis just because of a brand name maybe Apple, Amazon and the likes should work on pushing down the cost of food or not expect people to continue buying their products that they just keep raising prices on.
I mean I try to save so much money a month. If the cost of food and power increase then I make that cut somewhere and rest assured it's not coming from my savings. Electronics, clothing random shit from Amazon is gonna be one of the first places. It's also pretty damn easy to put off buying a new phone, computer, or graphics card for an extra year or even two. Or until the one I have is dead or just a bad annoyance to use.
I say let them bury themselves. It doesn't affect me at all if Apple, Nvidia, Sony, McDonald's, ECT... stock drops 5%. They need to read the fucking room.
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u/jermo537 Feb 04 '23
Good. Piece of shit, money hungry company making proprietary garbage that's years behind everybody else in the space by fooling people with flashy ad campaigns
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u/vivekisprogressive Feb 04 '23
I'm guessing not many christmas iPhones were bought by laid off workers.
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u/Yodan Feb 04 '23
Are we at the point where we need laws that say after X% in profit depending on the valuation of the company as a total all excess profit must be spent directly on worker bonuses/benefits and public parks?
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u/Mental_Judge6186 Feb 04 '23
The global financial concerns plus little change of the devices, why would you upgrade if your device is working fine. Have the 12 Mini and will not be upgrading to anything oversized since they don't exist in Apple land anymore. Those who have an iPhone are happy to keep what they have got. Throw away cash on minimal tech improvements plus a saturation in the market, sales are going to fall. Though things will slowly pickup but it will take some time.
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u/fightingforair Feb 04 '23
Oh boy a slight down in profits, still profitable but we better layover a load of people.
Capitalism. Because if we aren’t constantly making profit and the arrow isn’t always pointing up it’s somehow bad and labor has to suffer for it
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u/Mercury_NYC Feb 04 '23
Every two years I would get a new iPhone because of new tech which made them better. Now I have the iPhone 12 and I don’t see a value in getting the iPhone 14. I’m sure I’m not alone here, and people are now waiting to buy maybe an iPhone 15 or 16.
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u/fifthstreetsaint Feb 04 '23
Oh no the poor can't afford our products, guess we shouldn't have turned the US gov't into an Oligarchy.
world's smallest violin plays a sad tune
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u/Echelon64 Feb 04 '23
Better off waiting for the USB-C iphone IMO.
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u/cynric42 Feb 04 '23
Or get the last one with lightning so you can delay buying a bunch new cables for a while longer.
But I really doubt most people even care about the cable they use to charge their phone if they even still use cables for that.
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u/Scottishchicken Feb 04 '23
Oh no! They rebadged the same phone 6 years in a row and the public is finally noticing.
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u/t-bass Feb 04 '23
I mean, dude. You’re just lying.
I recently upgraded from a 10 to a 14. There’s no comparison.
So, please. Tell me how they rebadged an iPhone from 2017.
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u/teddytwelvetoes Feb 04 '23
that sure sounds scary. how many billions in profit? a few instead of the usual many? man, no wonder Tim Cook had to cut his salary to (checks notes) only ten lifetimes worth of money per calendar year