The tech giant is facing difficulties in the Chinese market, but it is making more profits than ever from services.
Apple has had a skewed financial year, and today reports Q4 numbers.
The trading value amounted to $89.5 billion, down from $90.146 billion in the same period last year. This is the fourth straight quarter to see a decline in the tech giant’s sales.
At the same time, the company exceeded the expectations of Wall Street analysts, who estimated its sales volume at $89.28 billion.
The stock fell more than 1 percent in after-market trading, but by 22:30 that figure had risen to more than 4 percent.
This comes after the company said it expects the traditionally good December quarter to be roughly the same as last year.
This could indicate that the company may not want to return to growth in the important quarter, CNBC wrote, which also notes that this year’s quarter is one week lower than last year.
Exceed your iPhone expectations
Today, Apple is pleased to announce record iPhone revenue in the September quarter and highest services revenue ever, Apple CEO Tim Cook says in a press release.
Earnings per share amounted to $1.46, compared to the expected $1.39.
The company sold iPhones for a total of $43.81 billion in the quarter. It was higher than analysts’ expectations ($43.73 billion) and higher than the same period last year ($42.62 billion).
In September, Apple launched the new iPhone 15, but the September quarter only contains about one week of sales for this device.
Services sales brought in $22.31 billion for Apple in the fourth quarter, up from $19.19 billion in the same period in 2022. That’s the highest ever, and a 16 percent increase, according to CNBC.
The Apple Services section includes online subscriptions like iCloud storage and Apple Music.
– He has a China problem
At the same time, turnover in the Chinese market fell much more than analysts expected. It amounted to $15.08 billion, compared to the expected $17.01 billion.
In the fourth quarter of 2022, the company’s sales volume reached $15.47 billion in the Chinese market.
Apple has not provided any formal guidance since 2020, but Morgan Stanley analyst Eric Woodring believes sentiment is becoming more challenging for the company, according to CNBC.
Among other things, they relate to competition from the Chinese company Huawei, lower demand for the iPhone 15 series in China, a strong dollar exchange rate, and more cautious consumers.
Apple has a China problem. “As for phone, I think it will be a weak September quarter in China,” Gene Munster, founder of Deepwater Asset Management, told the channel earlier this week.
Mac and iPad cases
The quarter that Apple left in September is, traditionally, neither the strongest nor the weakest for the technology company CNBC.
It typically features iPad and Mac sales increasing somewhat around the start of school. However, Apple warned in August that it expected a double-digit percentage decline in sales of these particular products.
The results show significant reductions in both categories.
The company sold Macs for $7.61 billion in the fourth quarter, compared to $11.5 billion in the same period in 2022. iPad sales fell to $6.44 billion, from $7.17 billion last year.
Apple shares have risen more than 40 percent since the new year. The stock closed Thursday up 2.07 percent on Wall Street.
“Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst.”
