Rising iPhone sales weren’t enough to counter the slump in Mac sales that dragged down the brand’s revenue. Apple still beat quarterly expectations with its net profit.
In the current context of the global economic slowdown, Apple is not doing too badly. The Cupertino company even managed to exceed expectations with 95 billion dollars in turnover and $24.2 billion in net profit for the first quarter of 2023. However, this does not prevent Apple from having recorded a drop in revenue compared to the same period last year (97.2 billion dollars in turnover and 25 billion in net profit).
Rising sales of iPhones and Services (Apple Music, Apple TV+, Apple Arcade, Apple One, etc.) have been major contributors to Apple’s revenue. However, they failed to offset Mac sales. These have actually melted like snow in the sun compared to last year. The iPhone is no longer of as much interest to young people in China, but it is still popular in the United States, hence its rising sales.
Tough quarter for Apple, Mac sales fell 31% from last year
From January to March 2023, iPhone sales increased 2% ($51.3 billion) over last year. This is good news for Apple as smartphone sales have plummeted around the world with inflation and the end of the pandemic. Subscriptions to Apple Services are the second source of income for the Cupertino company. Services-related revenues were indeed up 5% to $20.9 billion. These have been increasing steadily over the past 5 years.
As for Macs, sales have plummeted compared to last year. They went from 10.4 billion dollars in the first quarter of 2022 to “only” 7.2 billion dollars in the first quarter of 2023. This therefore represents a decrease of 31%. That’s not as much as the 40% analysts were expecting, but it still proves that Apple computers aren’t selling as well this year.
iPad sales also fell 13% dropping to $6.7 billion. Comparisons between iPad and Mac sales this year versus 2022 are difficult, according to Tim Cook. He explained that sales were stronger last year thanks to new products launched, including the iPad Air M1 and MacBook M2. Incidentally, Apple is expected to announce new MacBooks at WWDC23 in June.
Source : Apple
