Apple

Apple posted lower than expected revenue, profit and sales in its latest earnings report, marking the first y/y decline in sales since 2019. The decline was attributed to a strong dollar, production issues in China, and a challenging macroeconomic environment.
Earnings Per Share (EPS) came in at $1.88, down 10.9% y/y, while revenue of $117.2 billion, was down 5.49% y/y.
iPhone revenue of $65.8 billion, was down 8.2% y/y, while Mac revenue was $7.74 billion, falling 28.7% y/y.
iPad revenue increased by 29.66% y/y to $9.4 billion and services revenue was up 6.4% y/y to $20.77 billion.
The company’s March quarter revenue is expected to decline, with services expected to grow. But, Mac and
iPad sales are expected to decline double digits y/y. And iPhone sales will decline less in the March quarter than in the December quarter.
Apple’s brand strength and ecosystem have allowed it to grow into a dominant tech player, with its services segment expected to be the next big driver of growth.
Warren Buffet’s Berkshire Hathaway owns Apple stock which represents 41.76% of the equity portfolio. It is Buffett’s largest holding. The return on his investment is roughly 246% according to gurufocus estimates since establishing the position in the first quarter of 2016. Apple’s CAGR since 1982 is an incredible 19.6% versus the S&P 500’s 11.44%. We are holders of Berkshire Hathaway shares in the Cratos BCI worldwide Equity Fund and across Cratos Global Portfolios.
By Lee Kern