Apple Revenue Declines, iPhone Sales Remain Robust
In its latest report, Apple announced a decline in sales for the fourth consecutive quarter compared to the previous year. However, the company experienced an increase in profit due to the success of iPhones and services.
The technology giant said it made a profit of $23 billion on revenue of $89.5 billion, which was slightly less than the same period last year.
Apple CEO Tim Cook said iPhone sales set a new record for the September quarter, while money collected from services hit an all-time high.
The company brought in $43.8 billion in iPhone sales, while the services unit, which sells products like Apple Music and iCloud, generated $22.3 billion, up 16 percent from a year ago.
“We now have our strongest lineup ever heading into the holiday season, including the iPhone 15 lineup,” Cook said in the earnings release.
According to market tracking program Counterpoint, the iPhone’s performance was driven by a decline in smartphone sales worldwide in the recently ended quarter as consumers watched spending.
According to research from Counterpoint’s Market Pulse service, smartphone sales fell 8 percent, marking the ninth consecutive quarter of year-over-year declines.
Apple’s strong September sales and the buzz around the new iPhone 15 lineup were signs that the current quarter could break the losing trend, according to a market watcher.
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The company said the supply of premium versions of the iPhone 15 will be limited until the end of the year, which will hamper sales.
“We are working hard to get the product into the hands of all customers who have ordered it,” said Apple’s CFO Luca Maestri.
Cook said Apple continued to face an “uneven macroeconomic environment” in the quarter, including pressures from foreign exchange rates.
“We’ve adapted constantly to circumstances beyond our control, while being thoughtful and thoughtful about our spending.”
Sales of computers, tablets and related accessories decreased from the previous year.
Apple’s Macs in particular suffered as sales fell by half to $7.6 billion in the quarter, although this was partly due to the post-coronavirus sales surge a year ago.
“We have great confidence in our Mac lineup and are excited about the recently announced iMac and MacBook Pro powered by our M3 chips,” said Maestri.
The number of Mac users is at an all-time high, and half of the people who bought models in the recently ended quarter were new to Apple’s computer lineup, according to Maestri.
Apple unveiled its latest line of iPhones in September, and its Lightning charger ports were replaced with a universal charger on the latest models following a dispute with the European Union.
– China author –
The company said sales in China were down, but Cook added that this was due to currency factors.
“Underneath that, if you look at the different categories, the iPhone actually had a record for the September quarter in mainland China,” he said.
Since the US tech giant started operations in China in 1993, Apple has grown into a major supplier of smartphones, laptops and consumer electronics in the country.
In an earlier visit to Beijing in March, Cook said his company had a “symbiotic” relationship with China.
The country is still the company’s main production center despite the diplomatic turbulence between Washington and Beijing and talk of moving production to India.
Apple shares fell more than 3 percent to $171 in aftermarket trading after the results were announced.
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