Apple Faces Steepest Quarterly Decline in iPhone Sales Since Pandemic Outset
Apple has reported a significant 10% drop in year-over-year iPhone sales for the January-March period, marking the steepest decline since the pandemic began. This slump is putting pressure on the tech giant to enhance its products with more artificial intelligence.
The decline in iPhone sales is a concerning trend for Apple, as the product generates the majority of the company’s revenue. This drop in sales contributed to a 4% decrease in Apple’s overall revenue for the latest quarter, totaling $90.8 billion. Additionally, Apple’s profit dipped by 2% to $23.64 billion, or $1.53 per share.
Despite the decline in iPhone sales, Apple’s revenue and earnings per share slightly exceeded analysts’ projections. The company also announced a 4% increase in its quarterly dividend and committed to spending $110 billion on stock buybacks.
Investors have expressed concerns about Apple’s weakening iPhone sales and its ability to innovate in the rapidly evolving tech industry. Other tech giants like Microsoft and Google are making strides in artificial intelligence, posing a threat to Apple’s dominance.
Apple is expected to unveil more AI services in June, which could help the company regain its competitive edge. CEO Tim Cook emphasized the company’s commitment to AI technology and promised more details would be announced soon.
While weak sales in China and ongoing legal challenges present challenges for Apple, the company saw growth in its service division, with revenue increasing by 14% to $23.87 billion. This division benefits from deals with companies like Google and revenue from digital transactions within iPhone apps.
Overall, Apple’s latest quarterly report highlights the need for the company to innovate and introduce new products to stay ahead in the tech industry. With competition intensifying and consumer demands evolving, Apple faces a critical juncture in maintaining its position as a market leader.
Source: AP