Apple experienced a significant decrease in iPhone sales compared to the same quarter last year, with a ten percent drop in turnover from device sales. However, the tech giant's focus on subscriptions and other services has paid off, generating higher earnings in these areas.
During the second quarter of the fiscal year ending on March 30, Apple reported $45.9 billion in iPhone sales, down from $51.3 billion in the previous year. The company's overall revenue from various products declined, including iPads, Apple Watches, Homepods, Airpods, and accessories, although MacBooks saw a slight increase in sales thanks to the release of the MacBook Air with M3-soc in March, according to CEO Tim Cook.
On the other hand, Apple saw growth in revenue and profit from its Services division, which includes subscriptions like streaming services and iCloud. This shift towards service-based revenue has been a strategic focus for Apple in recent years, resulting in a revenue of $23.8 billion in the second quarter, compared to $20.9 billion a year ago. However, the majority of Apple's revenue still comes from physical product sales, which totaled $66.9 billion in the last quarter.
Despite the decline in iPad sales, from $6.6 billion to $5.5 billion, Apple is expected to launch new iPads with OLED screens to boost sales. Meanwhile, iPhone sales in China have continued to decrease, with a drop from $20.9 billion to $16.3 billion in the last quarter, highlighting ongoing challenges in the Chinese market for Apple.
English (US)