Apple gross sales dropped on the finish of 2022 as consumers squeezed by the rising value of dwelling reduce their purchases.

Gross sales on the iPhone big fell 5% within the three months to December in contrast with the identical interval in 2021.

It was the largest decline since 2019 and worse than anticipated.

The replace got here as many corporations warn a couple of sharp financial slowdown, particularly within the tech sector which boomed in the course of the pandemic.

Apple boss Tim Prepare dinner stated the agency was navigating a “difficult surroundings”.

He blamed the gross sales decline on provide shortages attributable to Covid-19 disruption in China – the place its telephones are manufactured – and a powerful greenback, in addition to wider financial weak spot stemming from rising costs, the warfare in Ukraine and lingering results from the pandemic.

“Because the world continues to face unprecedented circumstances … we all know Apple shouldn’t be proof against it,” he stated on a convention name with traders.

Apple stated the gross sales declines occurred all through the world and hit most of its merchandise.

Gross sales of its in style iPhones have been down greater than 8%, and gross sales of Mac computer systems dropped 29%.

The declines hit the agency’s earnings, which fell 13% to $30bn (£24bn).

Paolo Pescatore, analyst at PP Foresight, stated the agency, like many electronics makers, is struggling to make the case that customers ought to improve given “what’s perceived to be incremental enhancements on earlier fashions”.

“Extra so when everyone seems to be tightening their belts,” he added.

Globally the variety of smartphones shipped sank 12% final 12 months, in line with market evaluation agency Canalys.

Apple executives stated they anticipated their providers enterprise, which incorporates Apple Pay and Apple Information, to proceed to drive progress, noting that there at the moment are greater than 2 billion energetic Apple gadgets world wide.

“Once we have a look at the behaviour of our put in base, we predict it’s very promising,” stated chief monetary officer Luca Maestri, whereas warning traders that the agency was anticipating gross sales to proceed to say no within the months forward.

Different large tech corporations additionally stated they have been feeling stress in updates to traders.

Amazon, which has been struggling to re-ignite its e-commerce enterprise, stated gross sales at its on-line shops dropped 2% within the ultimate three months of 2022, in contrast with a 12 months earlier.

General, Amazon’s gross sales within the three month interval rose 9% to $149.2bn (£121bn), lifted by stronger progress in its cloud computing enterprise.

However its earnings dropped sharply, falling to close zero from $14.3bn (£11bn) a 12 months in the past, a change that chief monetary officer Brian Olsavsky warned traders was more likely to proceed in coming months.

At Alphabet, dad or mum firm of Google and YouTube, gross sales have been up simply 1% within the three months to December, in contrast with 2021, as corporations reduce on promoting – the corporate’s fundamental income – within the face of financial uncertainty.