Why Tim Cook Says The PC Industry Contraction Is 'Rough In The Short Term,' But Confident In The Long Term For Apple's Mac

Zinger Key Points
  • Mac revenue in Q1 was registered at $7.7 billion, in line with expectations, says Apple CEO Tim Cook.
  • Earnings per share during the first quarter were reported at $1.88 missing the Street estimate of $1.94.

Apple Inc AAPL CEO Tim Cook said the personal computer industry is “very challenged” at the company’s first-quarter results conference call on Thursday.

What Happened: Responding to a question on the call, Cook said “The [PC] industry is contracting.”

“​​I don't know how this year will play out, so I don't want to predict the year. But over the long run, we have a market that is a reasonable-sized market, a big market.”

The Apple CEO said the company had a “low share” but a “competitive advantage with Apple silicon.”

“Strategically, I think we're well positioned in the market, albeit I think it will be a little rough in the short term,” said Cook.

See Also: Everything You Need To Know About Apple Stock 

Why It Matters: During the quarter, Mac revenue was registered at $7.7 billion, in line with expectations, said Cook.

For the quarter that ended December 2022, Mac revenue came in at $7.735 billion compared with $10.85 billion in the quarter that ended December 2021.

“We had a difficult compare because this time last year, we had the extremely successful launch of the redesigned M1 MacBook Pros,” he said.

“We remain confident in and focused on the long-term opportunity for Mac,” added the Apple CEO. 

Earnings per share during the first quarter were reported at $1.88 missing the Street estimate of $1.94, according to Benzinga data. 

Price Action: On Friday morning, Apple shares were up 2.57% to $154.70 in the after-hours trading.

Read Next: Apple Q1 Earnings Preview: Did Tech Giant Weather Macro Challenges Better?

Market News and Data brought to you by Benzinga APIs
Posted In: NewsTop StoriesTechMacintosh computerTim Cook
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...