Apple Inc - Revenue dropped, but not a problem?

However, despite the revenue drop, the share price seems unaffected as it rose 2.7% in pre-market trading.

Here are some key points to take note of in their latest Q1'23 results.

Apple's bread and butter are still its iPhone. But over the years, Mac and iPad have slowly complimented its hardware business.

For Q1'23, Mac and iPad were the laggards, with Mac sales dropping by a whopping -32%.

Even though revenue dipped, all is not gloom when it comes to margins.

The gross margin for Q1'23 is 44.3%. This is which is 6 basis points better than Q1'22's gross margins which were 43.7%.

The lower Mac sales were prevalent in all regions. But for regions like Europe, Greater China, and Japan, unfavorable FX also affected the revenue.

The rest of Asia Pacific also saw weaker Asian currencies posing some drag to the region's growth. But the higher iPhone sales have actually seen the region grow by 15%.

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