Apple’s turnover continues to fall due to computer sales

Apple’s revenue reached $89.5 billion in the fourth quarter of its rolling fiscal year, down 0.72% in a single year, the fourth straight for the California-based group, weighed down by slumping computer sales.

However, the iPhone maker’s revenue exceeded analysts’ expectations, as did its net income, which amounted to $23 billion (+11%), according to a press release on Thursday. Sales of its flagship product reached $43.8 billion in the July-September period, in line with market expectations and slightly better than the $42.6 billion in the same period last year.

Its services business, which includes the App Store, Apple Music streaming platform and iCloud remote storage services, has outperformed its growth. The company’s revenue amounted to $22.3 billion, which is 16% more than in the summer of 2022.

Computer sales are down

Sales of computers, tablets and connected accessories were down compared to last year. Mac computers in particular are suffering from an unfavorable comparison effect as the group made up for production delays in the fourth fiscal quarter of 2022 due to plant closures in the spring due to Covid-19 cases. Their turnover over the past quarter fell by more than a third, to $7.6 billion.

The group had seen turnover fall in the previous three quarters due to slowing iPhone sales, but its chief financial officer promised an “acceleration” in smartphone and services sales in the summer.

As the holiday season approaches, analysts are watching for signs of whether consumers have an appetite for the new iPhone lineup unveiled in September. The base model iPhone 15 starts at $800, while the most expensive pro model, the iPhone 15 Pro Max, costs at least $1,200.

Sluggish market

“Demand for the iPhone 15 in China appears to have slowed over the past month following strong pre-order activity,” said Dan Ives. The Wedbush analyst, however, remains optimistic about sales of the product, a veritable “goose that lays the golden egg,” as he estimates that more than 100 million iPhones in China are old enough for owners to consider upgrading to a newer device. especially “Pro”. models.

This summer, the global smartphone market hit its lowest third-quarter level in a decade, according to research firm Counterpoint Research. Inflation and economic uncertainty are weighing on this market, which also benefited greatly from the pandemic in previous years. Apple is doing better than world number one Samsung and China’s Xiaomi, with iPhone sales falling less for the year (-9%) than those top rivals (between -13 and -15%), according to Counterpoint.