Declining sales

The iPhone is becoming Apple’s problem child

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03.05.2024 12:02

A robust service business and the sales success of new laptop models have given Apple a quarterly turnover above market expectations. After the recent declines, revenues can now be expected to pick up again, said CEO Tim Cook. He expects a low single-digit percentage increase for the current quarter. Analysts had previously predicted growth of 1.3 percent.

At the start of the year, group turnover shrank by four percent to 90.8 billion dollars (84.72 billion euros), according to the figures. However, experts had expected a decline to 90.01 billion dollars.

iPhone sales down by ten percent
The problem child was once again the iPhone, which accounts for half of the Group's revenue. It has to prove itself against increased competition from Samsung and Huawei. Apple's revenue from smartphone sales fell by more than ten percent to 45.96 billion dollars, the sharpest drop since more than three years ago. However, the previous year's figure was distorted by catch-up purchases following the lifting of pandemic-related restrictions, the company emphasized.

In the same quarter of the previous year, pent-up demand for the iPhone 14 Pro had also boosted sales. Many potential buyers were unable to purchase it in the 2022 Christmas season because coronavirus lockdowns in China slowed down production. All models of the current iPhone 15 were now available in the last holiday quarter, which meant that business at the start of 2024 was somewhat quieter as usual. iPhone sales were only just below analysts' average expectations. In China, the focus market for many experts, the decline was lower than expected at eight percent to 16.4 billion dollars.

Revenue from the services business, which includes the Apple TV+ streaming service, grew surprisingly strongly to 23.87 billion dollars. The feared decline in sales of Mac computers did not materialize. Instead, revenue rose to 7.5 billion dollars. "The driving force was the new MacBook Air with the M3 chip," said CEO Cook. "About half of our MacBook Air buyers this quarter were Mac newbies."

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