Apple seems to have lost its luster. Sales of the company’s flagship iPhone are down for the fifth time in six quarters.
Apple’s latest financial report reveals a worrying trend: iPhone sales are falling, negatively affecting the company’s overall revenue for the fifth quarter out of the last six. This situation is particularly critical in China, a market that CEO Tim Cook has described as the most competitive in the world.
The entry of Chinese competitors, notably Huawei, has created an increasingly difficult environment for Apple. Despite an overall decline in iPhone sales of 10% year over year, the situation is even more complicated in China where Apple reports an 8% drop in revenue.
The figures in detail
Apple’s financial results for the second quarter of fiscal year 2024 show a revenue decline of 4.31% year-over-year, from $94.836 billion to $90.753 billion. Profit also decreased slightly by 2.17%, from $24.160 billion to $23.636 billion.
| Indicator | Q2 2023 | Q2 2024 | Evolution |
|---|---|---|---|
| iPhone | 51,334 | 45,963 | -10.46% |
| Mac | 7,168 | 7,451 | +3.95% |
| iPad | 6,670 | 5,559 | -16.66% |
| Others products | 8,757 | 7,913 | -9.64% |
| Services | 20,907 | 23,867 | +14.16% |
| Turnover | 94,836 | 90,753 | -4.31% |
| Profit | 24,160 | 23,636 | -2.17% |
Apple highlighted that regions such as Latin America and Spain saw record revenue for the company during this quarter. Furthermore, the services division continues its irresistible rise, with increasingly significant revenues.
A financial paradox: stocks rise
Despite this mixed performance on the hardware side, Apple’s stock price is on the rise. Strange, right?
This was due to the announcement of a $110 billion share repurchase, a considerable increase from the previous year. This strategy appears to reassure investors about the long-term financial health of the company. Additionally, Apple was optimistic for the current quarter.
Apple’s next meetings are scheduled for May 7 for “Let Loose”, and WWDC in June 2024.