Tim Cook, Apple CEO, weighs in after disappointing first-quarter revenue

Apple CEO Tim Cook weighed in on the company reporting some financial results below estimates and its hiring in an interview Thursday, the day the company put out its first-quarter earnings.

Apple recorded revenue for the quarter at $117.15 billion – a more than 5% year-over-year drop – and earnings per share of $1.88. Refinitiv estimates had put those at $121.1 billion and $1.94, respectively.

APPLE POSTS DISAPPOINTING FIRST-QUARTER RESULTS

The global economy, it making the dollar stronger and lockdowns in China, were factors Cook pointed to regarding the revenue and earnings coming in below expectations, FOX Business correspondent Susan Li reported on "The Evening Edit." Production levels in China have returned, Cook told Li.

"In many areas in the company, we are not hiring at all," Cook told Li in response to a question about layoffs. "And then in engineering, we continue to hire some, but everybody is being very prudent."

Tech companies like Meta Platforms, Alphabet and Microsoft have recently announced reductions in their headcounts, whereas Apple has so far not done so. 

LAYOFFS 2023: TECH COMPANIES LEAD JOB CUTS AMID ECONOMIC UNCERTAINTY

Cook noted that the company posted quarterly costs below what had been guided, according to Li. She also reported that the CEO said Apple is looking at everything for any potential improvements in terms of costs.

Cook was also asked whether the company would build more in the U.S.

"America is our home," he said. "We want to do as much here as we can. We have an advanced manufacturing fund to spend here."

On the U.S. economy and consumers, he said Apple "really invest[s] for the long term, and we’re highly confident for the long term," according to Li.

Two of Apple’s operating segments, iPad and services, topped analyst expectations. The other three – iPhone, Mac, and wearables, home and accessories – did not. 

For the first quarter, the company posted roughly $9.4 billion in iPad net sales, compared to the $7.76 billion analysts had estimated, and $20.77 billion in services net sales, compared to estimates of $20.67 billion.

The net sales figure for services marked an "all-time revenue record" for that segment, CFO Luca Maestri said in the earnings release.

CLICK HERE TO READ MORE ON FOX BUSINESS

First-quarter net sales for the iPhone segment fell 8% year-over-year to about $65.78 billion, while its Mac net sales came in at roughly $7.74 billion. Wearables, home and accessories saw $13.48 billion in net sales.

In the company’s earnings release, Cook said Apple now has "more than 2 billion active devices as part of our growing installed base," something he called a "major milestone."

In after hours trading Thursday, Apple shares were trading roughly 3% below the $150.82 they had closed at.