Apple records new revenue decline due to slower iPhone sales

On Thursday, Apple announced a new decline in revenue (1.4 percent), marking the third consecutive drop during its struggling financial quarter, primarily driven by a slowdown in iPhone sales, according to the American tech giant.

In a statement, Apple reported a quarterly net income of $19.9 billion (a 2.3 percent increase) and revenue of $81.8 billion, both of which exceeded analysts' expectations.

Despite serving as a major driver for the company for over a decade, iPhone sales witnessed a decline in the last quarter, with sales dropping by 2.4 percent, surpassing market expectations.

Partially offsetting this slowdown is the growth in services, which includes the App Store and Apple Music streaming service, as well as cloud computing services. This segment now constitutes over a quarter (26 percent) of the company's revenue, a significant shift from its initial focus solely on computers and connected accessories.

Tim Cook, the company's CEO, stated in the release that Apple now has over a billion subscribers across its various services, adding 150 million subscribers over the past 12 months.

Commenting on the results, Jeremy Goldman, an analyst at "Insider Intelligence," emphasized the strategic shift towards services, which have become a crucial element, noting that this business area has been "significantly more profitable than the physical products the company built its reputation on."

Another category that showed progress was internet-connected accessories, which saw a growth of 2.4 percent over the year.

However, Mac sales declined by 7 percent, and iPad sales also saw a drop of 20 percent.

Geographically, Apple experienced accelerated sales in China, with a 7.9 percent year-on-year increase, following a contraction in the previous quarter. However, sales declined in the rest of Asia and the United States, while Europe recorded a strong performance.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFP