At a time when the tech industry’s biggest companies are recovering from post-pandemic decline, Apple is suffering its longest sales slump in more than a decade.
On Thursday, the world’s most valuable tech company said sales for the three months ended in September fell 1 percent from a year earlier to $89.5 billion, ending a fiscal year in which sales declined every quarter. Was recorded. The company said that profit increased by 11 percent to $ 22.96 billion.
Apple’s most important business, the iPhone, grew last month due to the release of four new devices, bringing sales up 3 percent from a year earlier to $43.81 billion. And the company’s sales for software and services like Apple Music and cloud storage rose 16 percent to $22.31 billion.
But sales of Macs, iPads and most of the company’s other businesses, including Apple Watch and AirPods, declined. Total product sales fell 5 percent to $67.18 billion.
The results exceeded Wall Street’s expectations of $89.34 billion in sales and $21.77 billion.
Apple shares have fallen 11 percent from their high this summer and were down about 1 percent in after-hours trading Thursday.
Apple Chief Executive Tim Cook will face many challenges in the coming year. Wireless carriers are reporting a slowdown in the number of people buying new smartphones in the United States, Apple’s biggest market, following a surge in demand for the new 5G iPhones, according to investment research firm Arete Research.
In China, Apple faces renewed competition in the luxury smartphone business from Huawei. The Chinese smartphone maker has been troubled by US restrictions on access to 5G technology and Android software in recent years, but in August it revealed a jade-green smartphone, the Mate 60 Pro, which has many iPhone-like capabilities. Following its release the Chinese government instructed employees of some government agencies to stop using iPhones for work.
Sales of Apple’s new flagship iPhones There was a decline of 4.5 percent during the last week of September According to Counterpoint Research, which analyzes the smartphone market, from last year. The firm said the decline was a result of a broader decline in consumer spending in China.
Last month, China expanded its challenge to Apple’s business by launching a regulatory review of its largest iPhone maker. Taiwan’s Foxconn is facing a tax audit and investigation over compliance with land use regulations. The investigation comes as Foxconn founder Terry Guo is running for president of Taiwan in a campaign that could boost the ruling party, which opposes closer ties with Beijing.
mr cook traveled to china last month An unannounced trip that included a stop at an Apple Store, a factory tour of Luxshare Precision, a Chinese iPhone maker, and a meeting Wang Wentao, the country’s commerce minister,
Enthusiasm for generative artificial intelligence has fueled excitement across the broader tech industry. Last month, Microsoft reported that investments in AI were starting to help sales of its cloud-computing business. Google’s parent company, Alphabet, which has invested heavily in AI, disappointed investors who had expected greater sales growth. Facebook’s parent company Amazon and Meta Platform also emphasized their investments in that area.
But Apple, known for its secrecy, has remained silent about its plans for generative AI. During a call with analysts in August, Mr. Cook said the company was investing in generative AI, but that it was unlikely to do so until it had an update. To bring the product to market.
As it heads into next year, much of the company’s attention will be focused on the release of its first major new product since 2014: high-tech glasses that blend the real world with virtual reality. The $3,500 device, Vision Pro, has the potential to provide a new revenue stream at a time when sales of its other products have slowed. Analysts estimate that Apple will sell less than half a million units.
The company is also focusing on reviving sales of its iPad and Mac. On Monday, Apple unveiled new MacBook Pros and iMacs with faster processors and encouraged customers with older Macs to upgrade. Mac sales declined 27 percent to $29.36 billion in the last fiscal year.