Apple’s Quarterly Revenues Dip 1% Despite Strong iPhone and Service Demand
Apple has reported a 1% decline in revenues, which reached $89.5 billion for the three months ending September 30. This decline is in comparison to the same period the previous year. Despite this, the tech giant’s profits soared, reaching $23 billion, driven by record iPhone sales during the same three-month period.
Sales of Mac computers and iPads, however, struggled to maintain momentum after a surge in demand following lockdowns. This marks the fourth consecutive quarter of year-on-year sales decline for Apple.
Apple has achieved robust sales in its services sector, which includes iCloud and Apple Music, generating $22.3 billion, representing a 16% increase compared to the previous year.
Although Apple faced challenges related to potential supply chain disruptions affecting the delivery of its new iPhone 15 Pro and Pro Max models, it expressed confidence in resolving these issues to restore a supply-demand balance by the end of the current quarter.
Apple’s CEO, Tim Cook, emphasised the company’s strong product lineup as it enters the critical Christmas trading season. The firm’s latest iPhone series was unveiled in September, with notable changes such as the shift from the proprietary lightning charging port to USB-C in compliance with European Union regulations.
Sales in China dipped by 2.5%, attributed to economic uncertainty. However, when adjusting for foreign exchange rates, Apple’s Chinese business exhibited year-on-year growth.
Tim Cook recently made a surprise visit to China to engage with the local gaming community. This visit is indicative of Apple’s ongoing efforts to navigate challenges stemming from COVID restrictions and US-China tensions that have impacted its operations in China, a crucial manufacturing base for the company.
The technology giant has experienced both successes and challenges in its product segments and global markets, showcasing the complexities it faces as it strives to maintain its position as a leading tech innovator.