Apple's biggest drop in sales since 2019

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Apple sales declined in late 2022 as shoppers cut back on purchases affected by the rising cost of living.

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The iPhone giant's sales fell 5% in the three months to December, compared to the same period in 2021.

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This was the biggest decline since 2019 and worse than expected.

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The update came as several firms warned of a sharp economic downturn, especially in the tech sector that boomed during the pandemic.

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Apple blamed the drop in sales on supply shortages due to Covid-19 disruption in China where its phones are manufactured and a stronger dollar, as well as macroeconomic weakness stemming from rising prices, the war in Ukraine and the pandemic-related impact.

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Apple said worldwide sales were down and most of its products were affected.

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Sales of its popular iPhones declined by more than 8% and sales of Mac computers fell by 29%.

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The fall hit the firm's profits, which fell 13% to $30bn (£24bn).

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According to market analysis firm Canalys, the number of smartphones shipped globally declined by 12% last year.

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Overall, Amazon's sales rose 9% to $149.2bn (£121bn) in the three-month period, lifted by strong growth in its cloud computing business.

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But its profits fell sharply, plunging to near zero from $14.3bn (£11bn) a year earlier, in a move Chief Financial Officer Brian Olsavsky warned investors was likely to continue in the coming months.

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