Global decline in demand affects technology retailer
- Apple reports dip in Q2 profits and sales
- iPhone demand weakens globally
- Profits down 2% to £18.82bn ($23.6bn)
- Sales drop 4% to £72.5bn ($90.7bn)
- Europe records positive growth
- iPhone revenue plunges 10% to £36.6bn ($51.3bn)
- Covid-related supply delays impact results
- Apple expects sales to return to growth
- CEO Tim Cook predicts low single-digit growth next quarter
- Sainsbury’s beats profit expectations with strong food performance
Apple has reported a dip in second quarter profits and sales as demand for its iPhone models weakens across almost all of its markets worldwide. Profits for the technology retailer slipped 2% to £18.82bn ($23.6bn) in the three months to 30 March, down from £19.2bn ($24.2bn). Sales dropped 4% to £72.5bn ($90.7bn), making it the steepest decline in over a year, with only Europe recording positive growth. Apple reported revenue for its iPhones models plunged 10% from £40.8bn ($45.9bn) to £36.6bn ($51.3bn). The retailer claimed its results were distorted by Covid-related supply delays, which caused unusually strong revenues during the same time last year. Apple insisted that sales would return to growth in the months ahead and chief executive Tim Cook told CNBC that overall sales would grow “in the low single digits” during the next quarter. A stellar food performance has helped Sainsbury’s beat profit expectations for the year. We look.
Factuality Level: 8
Factuality Justification: The article provides specific details about Apple’s second-quarter profits and sales, including percentages and figures. It also mentions the reasons behind the decline and Apple’s outlook for the future. However, the article includes some unnecessary information about signing up for newsletters and abruptly transitions to a different topic about Sainsbury’s without providing much context or relevance.
Noise Level: 2
Noise Justification: The article provides relevant information about Apple’s dip in profits and sales, including specific numbers and reasons for the decline. It also mentions the impact of Covid-related supply delays and Apple’s outlook for future sales. However, the article abruptly transitions to a different topic about Sainsbury’s without providing much context or relevance to the main focus on Apple.
Financial Relevance: Yes
Financial Markets Impacted: Apple’s dip in profits and sales may impact its stock price and investor sentiment. It may also have implications for the technology retail sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the financial performance of Apple, specifically a dip in profits and sales. While this is a significant event for Apple and the technology retail sector, it does not describe an extreme event.
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