Apple (NASDAQ:AAPL)
Apple (NASDAQ:AAPL) stock fell more than 2.5% in premarket trade on Monday after research company IDC reported that Mac sales in the first quarter fell more than 40% year-over-year, underperforming the broader PC market.
IDC reports that Mac sales fell 40.5% from the prior year, totaling 4.1M units. The worldwide economic downturn, excess inventory, and sluggish demand contributed to a 29% annual drop in PC sales over time, totaling 56.9M units sold.
Though channel inventory has dropped in recent months, it is still far over the healthy four to the six-week range, according to Jitesh Ubrani, IDC’s Mobility and Consumer Device Trackers research manager. “Channels and PC makers can expect elevated inventory to persist through the middle of the year and possibly into the third quarter,” the report said.
The other four of the world’s five leading PC manufacturers—Lenovo, HP, Dell, and Asus—also saw sharp declines in sales with Apple.
While the other three suffered drops of 30% or more, IDC found that HP, managed by Enrique Lordes, fared the best, falling by just 24.2% year over year during the quarter.
In 2021 and early 2022, Apple and other PC manufacturers profited from the rise of remote work due to the COVID-19 epidemic. This encouraged employees and companies to upgrade their computers.
Apple stock reported quarterly revenue of $7.7 billion, down from $10.85 billion in the same time a year earlier, all due to sales of Macs. Apple does not detail its unit sales in its quarterly reports.
Apple introduced a slew of new Macs in the first quarter, including revised versions of the MacBook Pro and Mac mini with M2 Pro and M2 Max CPUs.
Apple is scheduled to report financial results for the second quarter of fiscal 2023 on May 4, 2023.
Apple stock announced last week that it would establish its first retail shop in India in Mumbai’s financial sector.
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