The dual model developed by Apple demonstrates its effectiveness. If sales of terminals, including the iPhone, are in decline, the Cupertino company nevertheless manages to limit the impact on its income.
During the 3rd quarter of its fiscal year 2023, Apple achieves a turnover of 81.8 billion dollars. Accustomed to growth, the technological giant therefore recorded a 1% drop in turnover over one year.
$21 billion for Apple services
“During the quarter, we generated very strong operating cash flow of $26 billion, returned more than $24 billion to our shareholders, and continued to invest in our long-term growth plans.” ahead of the financial director.
Luca Maestri is not the only one to welcome the results communicated. Because Apple no longer depends solely on its hardware sales, even if these remain of course critical (50% of its turnover for the iPhone) for its performance.
“We are pleased to report that we achieved record services revenue in the June quarter, driven by more than one billion paid subscriptions,” said CEO Tim Cook.
“We continued to strengthen ourselves in emerging markets thanks to the sustained sales of the iPhone,” he still wishes to clarify. Indeed, even if Apple sees its global sales decline by 2.4%, the trend is not general.
The iPhone avoids the drowning of its rivals on smartphones
Apple, on the contrary, is recording growth in terms of adoption of its smartphone models in China, India and Latin America. The American firm is resisting, in a context of sharp decline in smartphone deliveries.
The Asian competition would no doubt welcome a decline of less than 3% in sales. The trend is harder on tablets and PC. iPad sales are indeed down 20%. The Mac drops by 7%.
But Apple has many reasons to be happy about the services, which generate a turnover of 21 billion dollars. Its subscriptions notably increased by 150 million over one year. In three years, the giant has tripled its subscriber base.
And with quarterly profits of 19.88 billion dollars (-2%), Gafam recalls that it remains the most profitable company in the world. Its profits allow it to invest massively in new areas, such as VR or generative AI.