Is Apple Earnings miss a big deal?

A lot of investors were counting on Apple to have another blowout quarter earning report, but they were disappointed with Apple’s recent earnings miss.  Apple missed its earning revenue and estimate for both top and bottom numbers and this is one of the rarest events by Apple. Does this mean that the economy is slowing down and should investors be worried? 

Apple's number for the year-end 2022 shows a rare double miss for both revenue and earnings estimates. The company stock price dipped after hours soon the report dropped but it picked back the next day.

Below is what Apple’s numbers look like, we got these numbers from Morningstar.

Earnings Per Share: Apple missed estimates, with EPS coming in at $1.88 versus the FactSet consensus of $1.94.

Revenue: Apple reported revenue of $117.15 billion, below estimates of $121.33 billion. Revenue declined by 5.48%, the worst since Apple’s 2016 September quarter.

Revenue declined for its iPhone (down 8%), Mac (down 29%), and wearables (down 8%). However, iPad sales grew about 30% and services 6%, partially offsetting losses.  

A lot of tech companies are seeing reduced sales, as a result, they are laying off many employees to cut the cost of operations.