Apple’s financial situation continues to decline slightly. As we’ve seen over the last two quarters, the company experienced minor declines in revenue in the third quarter of fiscal 2023, but these are still acceptable mistakes for a company that makes absurd amounts of money every quarter. On the other hand, declining revenues for three consecutive quarters may be giving important signals.Nearly all hardware’s revenue fell
Apple’s revenue from the Services segment (like paid iCloud plans, Apple Music, AppleCare, App Store, and countless other offerings) hit an all-time high of $21.2 billion, as often happens. This segment, which is the company’s second largest product category after the iPhone, grew by eight percent compared to the previous year. But iPhone, Mac and iPad revenues all fell from a year ago, as they did last quarter.
Apple’s revenue from iPhone sales decreased by 2% to $39.7 billion. Sales of iPads (down 19.8 percent) and Macs (down 7.3 percent) fell more significantly. But given that Apple hasn’t refreshed any iPad hardware since last fall, it’s hardly surprising to see a decline in this area. Wearables (like the Apple Watch and AirPods) and accessories were another positive point, with revenues increasing by just over two percent. Because this division was the only unit that increased its revenue in the hardware segment.Revenues decreased, profits increased
Overall, revenue of $81.8 billion represented a decrease of less than two percent from the prior year, while profit actually increased by about two percent to $19.9 billion. Tim Cook said in a press release: “We are pleased to report that we broke the all-time revenue record for services with over 1 billion paid subscriptions in the June quarter and continued strength in emerging markets thanks to strong iPhone sales.” As can be seen here, Apple is expanding its services to compensate for slowing iPhone sales, and this quarter shows that the strategy is working.iPhone 15 series is coming
Apple’s iPhone 15 Pro and Pro Max are expected to feature a new titanium frame, smaller bezels than ever before, and potentially more camera upgrades than last year at a higher price. The standard iPhone 15 and 15 Plus are said to have Dynamic Island; which will encourage developers to keep trying the UI element as it will now be standard across the entire series. All iPhones this year are expected to switch from Apple’s Lightning connector to USB-C. The company’s latest major software releases such as iOS 17, iPadOS 17, watchOS 10, macOS Sonoma, and tvOS 17 are currently in public beta testing and will be widely available from September.
On the Mac front, the upgraded 24-inch iMac and 13-inch MacBook Air could launch this fall. Looking beyond autumn, the Vision Pro mixed reality glasses, the company’s first major product developed for a long time, will be available at the beginning of 2024.
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