Apple posts first revenue drop in four years

Apple shares slid more than 4% on Thursday after the company posted a disappointing first-quarter earnings report, including rare misses on revenue, profit and sales.

The iPhone maker missed analyst expectations on profit for the first time in seven years, after strict Covid-19 lockdowns and related protests in China upended iPhone production at its biggest supplier.

Apple alluded to ongoing headwinds in a press release accompanying the report, which observers are calling shocking. Strict lockdowns in China, which produces 90% of its devices sold globally, cost it approximately $4bn in lost sales in 2022. In a call with investors on Thursday, Cook said iPhone revenue would have grown in the quarter if not for these supply issues, but said production is back to pre-shutdown goals.

Amazon is facing a difficult reset after its pandemic boom and recently announced 18,000 job cuts. The tech and retailing giant reported a net loss of $2.7bn for 2022, compared to net income of $33.4bn a year before. The loss included a pre-tax loss of $12.7bn on its investment in electric vehicle maker Rivian. Net sales increased 9% to $514bn, compared to $469.8bn in 2021.

Last month, Alphabet cut 12,000 jobs, or 6% of its global workforce, and vowed to create a leaner, more efficient company.

It was then hit with a US Department of Justice lawsuit accusing the company of abusing its dominance of the digital advertising business.