Apple posted lower annual revenue for the first time since 2019
Despite beating Wall Street estimates for the quarter, Apple’s whole-year revenue has dropped year-over-year for the first time since 2019.
Operating expenses increased significantly, rising 6.8% to $54.85B from $51.35B, while research and development costs rose 14% year over year from $26.25 billion to $29.92 billion.
The news comes despite an array of new product introductions in the quarter, including the iPhone 15, Apple Watch Series 9 and Apple Watch Ultra 2, although all of them were released after the quarter began. It also marked the first full quarter of sales from Apple’s Q3 product launches, which included the 15-inch MacBook Air model, refreshed Mac Studio and M-series Mac Pro.
Net sales by category only showed growth in one segment: Services. Otherwise, Apple posted lower year-on-year net sales in every category: iPhone, Mac, iPad, and Wearables, Home and Accessories.
