Apple sold fewer iPhones, Macs, and iPads in the last quarter, leading to a decline in the company’s total revenue for the third consecutive quarter. However, there was a bright spot for Apple in the sales of digital products, such as subscriptions to Apple Music and iCloud.
Particularly disappointing was the iPhone sales, which were over 2 percent lower compared to the same quarter last year. The quarterly revenue from iPhone sales amounted to $39.7 billion (€36.25 billion). Analysts had expected higher revenues.
“The U.S. smartphone industry is challenging at the moment,” said Apple CEO Tim Cook to CNBC. The iPad also performed poorly, with 20 percent fewer units sold compared to a year ago, and Mac sales declined by 7 percent.
Only Apple’s wearable gadgets performed slightly better. Revenues from products like AirPods and the Apple Watch grew by 2 percent year-on-year, reaching $8.28 billion.
The months from April to June typically constitute the weakest quarters for Apple products, mainly because the new iPhone is announced in the current quarter, which remains the company’s flagship product. There are high expectations for the iPhone 15 with a possible new design.
Apple found a silver lining in the revenue generated from services like the App Store and Apple Music. The services segment grew by 8.2 percent compared to the same period last year.
Cook described it as a record revenue and mentioned that the company now has one billion subscribers paying for its digital products. Apple is increasingly focusing on services to offset the declining iPhone sales.
In total, Apple’s revenue for the last quarter amounted to $81.8 billion, which is 1 percent less than the previous year. However, the net profit improved to $19.9 billion compared to $19.4 billion in the same quarter last year.
Leah Kunze just graduated MBA and is proud of it. She is interested in automotive industry and innovations. She well be glad to receive a mail to leah.kunze@economicinform.com
