Michelle ThompsonDespite the strong demand for its iPhones and services like Apple TV+, Apple’s overall sales have continued to decline.
The technology giant reported a 1% decrease in revenues, falling to $89.5 billion (£73.3 billion) in the three-month period ending on September 30, compared to the same period in the previous year. Sales of Mac computers and iPads faced challenges after a surge in interest following the lockdown.
This marks the fourth consecutive quarter with a year-on-year decline in sales. However, the company revealed that it achieved profits of $23 billion, with a new record in iPhone sales during the same three-month period. Additionally, the earnings from services such as iCloud and Apple Music reached a high point, generating $22.3 billion for the California-based company, marking a 16% increase from the previous year.
Despite these positive aspects, Apple expressed concerns about potential supply chain issues that could disrupt the delivery of its new iPhone 15 Pro and Pro Max devices. Apple’s CEO, Tim Cook, assured that the company is working diligently to increase production and stated that they anticipate achieving a balance between supply and demand later in the quarter.
Tim Cook expressed confidence in Apple’s product lineup, considering it the “strongest” as the company entered the crucial Christmas trading season. However, recent data suggests that some Apple products have failed to capture the interest of customers.
For instance, sales of Mac computers dropped to $7.6 billion for the quarter, a decline from $11.6 billion the previous year. Apple announced its latest iPhone lineup in September, revealing that the iPhone 15 would no longer include the proprietary lightning charging port due to pressure from the European Union. Instead, it adopted a USB-C cable as the “universally-accepted standard.”
Apple has also encountered challenges in various markets, with economic uncertainties affecting Chinese consumers. The company reported a 2.5% decline in sales in China, although Tim Cook noted that when accounting for foreign exchange rates, their business in China had grown year on year.
Cook’s visit to China marked his second trip to this important market in the year. Apple’s operations in China have been affected by COVID-19 restrictions and tensions between the U.S. and China. In March, he emphasized the “symbiotic” relationship between Apple and China, given the country’s significance as a manufacturing base for the company.
