(AOF) – Apple’s weaker than expected revenues in China cast a shadow over solid results. The Apple firm generated in the first quarter, ended at the end of December, a net profit of $33.92 billion, or $2.18 per share, compared to respectively $30 billion and $1.88 per share, a year earlier. earlier. Earnings per share came in 7 cents above consensus. Revenue increased 2% to $119.6 billion. It also exceeded market expectations: $118 billion.
Apple has ended four consecutive quarters of decline in its activity.
Highly watched, sales in China fell 13% to $20.82 billion while they were anticipated at $23.5 billion, according to analysts polled by Bloomberg.
Chinese restrictions
More and more Chinese agencies and state-backed companies have asked their staff not to bring iPhones and other foreign devices to work, Bloomberg reported in December. Apple shares had already been under pressure in early September following reports of a possible extension of the ban on the use of iPhones in China.
iPhone revenue increased 6% to $69.7 billion. They exceeded expectations.
Services, which include in particular the App Store, iCloud and iTunes, showed growth of 11.3% to $23.12 billion while the market expected $23.4 billion.
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Sector sheet – Electronics
Large TVs booming
If specialists expected less appetite for large televisions after the health crisis, this is clearly not the case. The IFA highlighted the development of this equipment, with screens that can reach up to 120 inches. This market segment should see its activity driven by next summer’s Olympic Games. Leader for seventeen years in the television market, Samsung offers the most complete technological range. Large televisions are rather standard products for the Korean giant. As for the Chinese TCL, which took second place in the world market from LG, it is banking on the accessibility of its products, with prices significantly lower than those charged by Samsung. The group achieved growth of nearly 68% between the first half of 2021 and 2022 in the segment over 65 inches. Over one year, the average size of screens marketed by TCL increased from 46.3 to 49.9 inches. Another Chinese player, Hisense, is also seeking to gain market share in this niche.
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New historic decline in computer sales
After having already suffered a sharp decline last year, the market is faced with demand which remains weak. Supply suffers from excess inventory, which impacts prices. According to IDC, PC sales fell by another 29% in the first quarter, falling to less than 57 million units. This is much less than the 59.2 million devices sold over the same period in 2019, before Covid. Demand is down for individuals and businesses, which have equipped themselves with the rise of teleworking. The continued rise in interest rates in the United States and Europe, and its impact on inflation, is also detrimental. Among market leaders, Lenovo, Dell and Asus posted volume declines of more than 30%. HP recorded sales down 24%. Apple faced the biggest drop, with sales collapsing by more than 40% year-on-year. The Californian group could suffer from its rather high-end positioning.