Apple has reported a fourth consecutive decline in sales, marking its longest slowdown since 2001, as it grapples with sluggish demand and a challenging smartphone market in China.
In the fiscal fourth quarter ending on September 30th, Apple's revenue dropped to $89.5 billion (€84.3 billion), which closely aligned with the average Wall Street estimate of $89.4 billion. Apple chose to continue its policy of not providing formal guidance for the current quarter, a practice it adopted during the pandemic.
The 1% decrease in sales from the previous quarter was in line with expectations. Notably, Apple achieved a quarterly record of $43.81 billion in iPhone revenue, according to Apple's CEO, Tim Cook.
These results suggest that Apple is grappling with a more significant slowdown in China than initially anticipated. The Chinese government has imposed bans on iPhones in some workplaces, and fresh competition has arisen from Huawei Technologies. V5 V5 V5 V5 V5 V5 V5 V5
Following the release of these results, Apple's shares dipped by 1.5% in late trading, having previously closed up by over 2% at $177.57 in New York. The company's stock had experienced a 37% rise earlier in the year.
During the fourth quarter, Apple updated its flagship product, the iPhone. This period included just over a week of sales data following the iPhone's launch on September 22nd. Additionally, the company introduced new watch models – the Series 9 and Ultra 2 – and updated its AirPods Pro with the addition of a USB-C port.
The iPhone constitutes roughly half of Apple's total sales, making the launch of a new model a closely-watched event by investors. With the introduction of the iPhone 15, the company redesigned the high-end versions by giving them titanium cases and adding features such as a more powerful zoom camera lens. The aim was to attract smartphone shoppers who have been holding onto their old models for longer periods.
These results come after Qualcomm, the leading maker of smartphone chips, provided a positive outlook by forecasting stronger sales for the current quarter than analysts expected, triggering a rally in its stock.
While the personal computer market is set for a rebound, Apple did not introduce any new models during the quarter. However, the company did unveil new MacBook Pros, iMacs, and M3 processors earlier in the week. Sales of these new machines will not be reflected in Apple's results until the quarter ending in December.
It is worth noting that Apple's revenue for the September quarter might have been stronger if the company had released new iPads during the period, as it occasionally does, or made more significant changes to its accessories. The latest Apple Watches and AirPods represent only modest tweaks from their predecessors.