Apple sees sales slump continuing, shares drop 2% despite beating sales expectations

Apple released its fiscal third-quarter results, beating Wall Street’s sales and profit targets. However, despite this positive performance, the company’s shares dropped about 2% due to concerns over a continuing sales slump. Apple forecasted a potential fourth consecutive quarter of declining sales, partly driven by weaker than expected iPhone sales, which disappointed investors.

While Apple’s services segment, including Apple TV+ and sales in China, showed strength, the company faces a challenging situation with its iPhone competing against Android rivals in a mature market. Moreover, its highly anticipated next big product, the Vision Pro mixed-reality headset announced in June, is yet to reach consumers.

The fiscal third-quarter sales reached $81.8 billion, and earnings per share rose to $1.26, surpassing analyst expectations. However, the outlook for the fiscal fourth quarter is conservative, with Apple expecting a year-over-year revenue performance similar to the drop reported in the third quarter.

Apple’s Chief Financial Officer, Luca Maestri, stated that the company’s research and development spending has increased, particularly in the field of generative artificial intelligence. The company remains committed to investing in and advancing products using AI technologies.

Despite the overall smartphone market’s decline in China, Apple’s iPhone sales in the country grew by “double digits,” and the company saw strong performance in other segments as well. The Greater China region’s sales reached $15.76 billion.

Apple continues to face challenges due to a slowdown in smartphone market growth, but it strives to innovate and leverage AI technologies to enrich users’ lives. The company’s services segment and wearables business, which includes the Apple Watch and AirPods, showed strong results, with 1 billion subscribers now on its platform.

Looking ahead, investors are eagerly awaiting any potential announcements related to the Vision Pro or AI technologies that could further drive Apple’s business model.

Posted in

Infotech Hub

Leave a Comment





MacBook Pro with images of computer language codes

Emerging Trends in Artificial Intelligence

a room filled with lots of metal chairs

The Future of the Infotech Industry in 2024

IT companies see shift in deal scope on GenAI, muted market

IT Companies Adapt to GenAI Opportunities Amid Market Slowdown

SatCo Makes First 5G Call via Satellite Using Everyday Smartphone

SatCo Makes First 5G Call via Satellite Using Everyday Smartphone

Unlocking Success: The Crucial Role of Lead Generation for IT Companies

Doogee V30T Smartphone: A Rugged Masterpiece With Carrier Caveats

Doogee V30T Smartphone: A Rugged Masterpiece With Carrier Caveats

The Realities of Switching to a Passwordless Computing Future

The Realities of Switching to a Passwordless Computing Future

The Intersection of Marketing and Technology: Exploring the Future of Digital Strategies

Boost Your Sales Pipeline: Discover the Best Lead Generation Software

Sci­en­tists develop fermionic quan­tum pro­ces­sor

Sci­en­tists develop fermionic quan­tum pro­ces­sor

More Linux Malware Means More Linux Monitoring

More Linux Malware Means More Linux Monitoring

Tech Tools for Writers

Tech Tools for Writers

Infotech Hub Today: Empowering the IT Community through Cutting-Edge Publishing

Interview with Mr.Cameron Chehreh

Interview with Mr.Cameron Chehreh

Interview with Mrs.Linda Visnick

Interview with Mrs.Linda Visnick

Tim Bernes-Lee

Interview with Mr.Tim Bernes-Lee

Interview with Mr.Brian Weaver

Interview with Mr.Brian Weaver

Tech Tips & Strategies.

Tech Tips & Strategies.

Tech Product Reviews.

Tech Product Reviews.

Engineers grow full wafers of high-performing 2D semiconductor that integrates with state-of-the-art chips

Engineers grow full wafers of high-performing 2D semiconductor that integrates with state-of-the-art chips

Cyber Insurance Costs Rising, Coverages Shrinking: Report

Cyber Insurance Costs Rising, Coverages Shrinking: Report

Scientists Reveal the Secrets Behind Record-Breaking Tandem Solar Cell

Scientists Reveal the Secrets Behind Record-Breaking Tandem Solar Cell

The Enchilada Trap: New Device Paves the Way for Bigger and Better Quantum Computers

The Enchilada Trap: New Device Paves the Way for Bigger and Better Quantum Computers

Magnonic computing: Faster spin waves could make novel computing systems possible

Magnonic computing: Faster spin waves could make novel computing systems possible

Quantum physicists simulate super diffusion on a quantum computer

Quantum physicists simulate super diffusion on a quantum computer

Research group detects a quantum entanglement wave for the first time using real-space measurements

Research group detects a quantum entanglement wave for the first time using real-space measurements

Switching 'spin' on and off (and up and down) in quantum materials at room temperature

Switching ‘spin’ on and off (and up and down) in quantum materials at room temperature

Advancements in Biometric Authentication Systems

Advancements in Biometric Authentication Systems

AI-Driven Personalized Medicine: A Breakthrough in Healthcare

AI-Driven Personalized Medicine: A Breakthrough in Healthcare

Cloud Robotics: Bridging the Gap Between Robots and the Cloud

Cloud Robotics: Bridging the Gap Between Robots and the Cloud