Apple has seen a slowdown in hardware sales among its flagship Mac computers and iPhone smartphones, but the company has good news in contrast, as it will see a surge in its services division, reports TheDesk.net.
The figures are part of Apple’s second fiscal quarter earnings, which cover the first three months of the calendar year. The tech giant’s total revenue for the quarter was $94.8 billion, down 3% compared to the second quarter of 2022, and it cited lower electronics sales as part of the reason.
Apple, which so far hasn’t had massive employee layoffs, will report its first-ever decline in revenue across all product lines, even as demand and production for iPhones in China recovered from the disruption caused by last year’s pandemic.
The Difference
Apple’s sales of computers, phones, tablets, watches and other hardware fell to $73.9 billion in the quarter from $77.5 billion reported in 2022. The sales slowdown in the first three months is not unusual as consumers cut back on spending after the holidays.
Apple’s iPhone line is still the best-selling product with over $51.3 billion in sales in the second quarter of 2023, up from $50.7 billion last year. Mac sales declined to $7.12 billion, down about $3 billion from 2022.
“We are pleased to report an all-time record in services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high. We continue to invest for the long term and lead with our values, including making major progress toward building carbon neutral products and supply chains by 2030”,
Said in a statement Tim Cook, the CEO of Apple.
Although the company posted the first revenue decline in its history, the forecasts and reactions are not black-eyed. Luca Maestri, who is Apple’s CFO, said there was an improvement in the company’s overall business performance compared to the December quarter. In the last three months, the company has been able to return over $23 billion to its shareholders.
