apple (NASDAQ: AAPL) would have grown in the “vast majority” of markets in which it operates on an annual basis if not for a significant 800 basis point exchange rate differential, CEO Tim Cook said during the company’s conference call Thursday.
The iPhone and wearables, home and accessories businesses were the two segments most affected by currency changes, while the iPhone also dealt with supply constraints that lasted for much of December. Cook noted, however, that iPhone production is now back to where Apple ( AAPL ) wants it to be.
The Mac segment, which generated $7.7 billion in revenue during the quarter, delivered expected results but faced a tough year-over-year comparison after Apple ( AAPL ) launched the MacBook Pro M1 last year.
In January, Apple ( AAPL ) announced the new MacBook Pro and Mac mini, along with new M2 Pro and M2 Max chips.
Cook, 62, also said that Apple ( AAPL ) is not immune to the broader macroeconomic challenges facing the world, but the company has the same approach as always: manage for the long term, adapt quickly and continue to deliver with excellence.
Cook also said Apple ( AAPL ) now has 935 million paid subscriptions, up from the 900 million it reported last month.
The company has also crossed more than 2 billion active devices as part of its installed base.
During the conference call, CFO Luca Maestri said that revenue for the March quarter is expected to be “similar” to the December quarter, which would mark an acceleration. Foreign exchange is also expected to be an obstacle and amount to negative 5 percentage points.
Services revenues are expected to grow year over year, although digital advertising and mobile games will continue to underperform. The iPhone is expected to accelerate sequentially, while the iPad and Mac are expected to see double-digit year-over-year declines.
Maestri also said gross margins are expected to be between 43.5% and 44.5%, with operating expenses between $13.7 billion and $13.9 billion.
Cupertino, Calif.-based Apple ( AAPL ) earned $1.88 a share on revenue of $117.15 billion during the first quarter, as iPhone sales totaled $65.78 billion, down from $71.62 billion dollars in the same period last year.
However, Apple’s ( AAPL ) earnings and sales were below analysts’ projections for earnings of $1.95 per share on revenue of $121.65 billion.
Apple ( AAPL ) is likely to be without a design chief after longtime CEO Evans Hankey leaves the company later this year.