Apple, the world’s first $3 trillion company, has experienced a setback as it reported declining sales for the third consecutive quarter due to weak iPhone demand. As a result, the company’s shares dropped by almost 3.5% on Friday morning, reducing its market cap to $2.92 trillion. In the third quarter ending in July, Apple recorded a revenue of $81.8 billion, a decline of 1.4% from the previous quarter and 3% from the previous year. The Chief Financial Officer, Luca Maestri, stated that Apple’s performance would likely follow a similar trend in the final quarter of the year, making it the biggest downward streak the company has seen in twenty years. Despite this, Apple’s shares had increased by nearly 50% earlier in the year.
Apple CEO Tim Cook attributed the disappointing sales of the iPhone to “foreign exchange headwinds,” as a stronger dollar negatively impacted the company’s international revenue. The sales of the iPhone declined by 2.94% to $39.7 billion in the third quarter, slightly below analysts’ expectations. However, sales in China saw growth of 8% year-over-year. Apple executives also acknowledged that the US smartphone market would slow down. Mobile device sales have been weak according to Qualcomm, a chipmaker and iPhone supplier, projecting lower sales than analysts’ estimates for the fiscal fourth quarter. Despite the weaker iPhone sales, Apple’s subscription services, such as Apple TV+, performed well with 975 million paid subscribers.
Apple has been cutting costs, including conducting layoffs earlier in the year, but continued to experience challenges in production. The highly-anticipated Vision Pro mixed-reality headset, priced at $3,500, has faced production difficulties causing delays and the need for cuts in production targets. Apple is also set to release new products, including the iPhone 15 Pro and Pro Max with larger screen displays and a faster processor, as well as the Apple Watch Series 9 and the rumored Apple Watch Ultra in pink. However, specific release dates have not been announced.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
