Apple’s profits have missed forecasts for the first time in seven years as lockdowns in China hit sales of its iPhones.
Sales fell 5 per cent to £96billion in the three months to the end of December. Profit, meanwhile, dropped to just under £25billion from £28billion in the same period in 2021.
The figures followed a difficult time for Apple as it battled production disruption at factories in China due to ever-shifting Covid restrictions.
In the run-up to Christmas, it faced significant interruption from lockdowns and worker protests at manufacturer Foxconn’s facility in Zhengzhou.
The plant, which employs 200,000 workers, produces the majority of Apple’s iPhone 14 Pro and iPhone 14 Pro Max handsets.
Setback: Apple, led by boss Tim Cook (pictured), saw sales fall 5% to £96bn in the three months to the end of December
Apple said in November that production issues would mean its iPhone shipments would be lower than expected.
Before last night’s results, Apple shares were up 20 per cent this year following a 30 per cent slump in 2022.
The company was rocked by the wider tech sell-off as the Federal Reserve hiked US interest rates and the global economy teetered on the brink of recession.
It has also been the subject of speculation around how long it can outperform the market as the cost of living and inflation affect consumer spending power and leave its pricey electronics out of reach for many shoppers.
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