Apple’s value of $3 trillion may be in danger after Q3 sales fell again.
Slow iPhone sales were the root of this decline. In Q3, iPhone made $39.67 billion, which is less than last year’s Q3 earnings of $40.66 billion.
According to the company’s report, a fourth consecutive quarter of declining sales may follow the third. After the news came out, the share price of the company dropped 2.2% before the US market opened on Friday. Analysts think that if this trend keeps up, Apple will no longer be the most valuable company in the world.
Apple’s service income went from $19.6 billion to $21.2 billion, which was more than what analysts had predicted. This made up for the slowdown in hardware sales.
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Tim Cook, the CEO of Apple Inc., said in a press release, “We are thrilled to announce that we set a new revenue record for Services in the June quarter, thanks to over 1 billion paid subscriptions and continued success in emerging markets thanks to strong iPhone sales.”
Tim Cook said that the company stands up for its views and supports innovations that make customers’ lives better and make the world a better place for people and technology to explore.
As the Q3 report shows, Apple’s year was driven by 8% growth in sales in China. A California-based company says it has increased its share of the smartphone market.
The CEO told CNBC that AI and ML are now core technologies that are used in almost every product the business makes. The company has been studying AI, machine learning, and creative AI for years.
Apple’s third quarter highlights
People thought that the company did well in Greater China, which includes Hong Kong and Taiwan, in addition to the mainland. Sales in the area in question went down in the previous quarters, but they went up by 8% year over year to $15.76 billion. It is the third-biggest sales region for Apple, and the CEO called it a “definite acceleration.”
“This is because we did very well with iPhone switchers during the quarter,” he said. Tim Cook told CNBC, “Based on the reports we’ve seen, we think we gained market share in the smartphone industry in China for the quarter.”
Apple’s recent history
The company that makes iPhones became the first public company to end a trading day with a market value of $3 trillion. In June, the market value of the company reached $3 trillion, making it the first widely traded company to do so twice.
Apple’s sales keep going down because the economy is getting worse and people are putting off buying computers and iPads because prices are going up. The tech giant said a few weeks ago that its income for the first three months of this year was down 3% compared to the same time last year.
Apple prioritizes user experience and market position for a bright future. Apple intends to challenge Meta’s mixed and virtual reality goods with the Apple Vision Pro, a more expensive device.
In Egypt, Tanzania, and Nigeria, Apple will modify the app and in-app payment fees on July 25, 2023. These price increases will affect app developers and users.
