The third consecutive quarter of declining revenue puts Apple’s $3 trillion valuation at risk

Because of sluggish economic growth and consumers delaying purchases of iPhones and iPads, Apple's sales have continued to decline

August 4, 2023 Samson Ayodeji

Given that Apple’s Q3 revenue result showed yet another fall, the company’s $3 trillion valuation may be at risk. Slowing iPhone sales are the cause of this reduction. iPhone brought in $39.67 billion, down from $40.66 billion in the same quarter last year, according to the company’s Q3 figures.

According to the company’s report, this loss would be the third straight quarterly revenue decline for the company. A fourth consecutive quarter of revenue declines may also occur. The company’s share price decreased as much as 2.2% in Friday’s US premarket trading as a result of the news. According to analysts, Apple would soon lose its status as the most valuable business in the world if its stock price continued to decline.

However, Apple’s continued success in the services sector offset the decline in hardware sales, which increased year over year from $19.6 billion to $21.2 billion, above analyst expectations.

“We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone,” stated Tim Cook, CEO of Apple Inc. in a release.

In order to make the world a better place for people and technological discovery, Tim Cook added that the firm is promoting its beliefs while embracing innovation that enhances customers’ lives.

Apple’s success for the year was also influenced by sales in China, which rose by 8% year over year, as can be seen in the Q3 report. In the largest smartphone market in the world, the California-based corporation claims to have seen a gain in its market share.

Additionally, the CEO stated in an interview with CNBC that AI and ML have evolved into core technologies and are practically integrated into every product the company creates. Additionally, the business has been conducting research on artificial intelligence (AI) and machine learning, especially generative AI for so many years.

highlights of Apple’s third Quarter

Greater China, which encompasses Hong Kong and Taiwan in addition to the mainland, was noted for the company’s performance. Sales in the aforementioned region rose by 8% year over year to $15.76 billion after declining in the preceding quarters. Third-largest in terms of sales for Apple, the CEO described it as a “definite acceleration.”

We performed quite well in switchers for iPhone during the quarter, which is why. According to the information we have received, Tim Cook told CNBC, “We believe we gained share in the Chinese smartphone industry for the quarter.”

Apple’s recent history

The maker of the iPhone became the first publicly traded corporation to end a trading day with a market value of $3 trillion. In June, the market value of the firm reached $3 trillion, making it the first publicly traded company to do so twice.

As the economy sputters and consumers put off buying computers and iPads due to increased prices, Apple’s sales have continued to decline. The software giant revealed a few weeks ago that, compared to the same period in 2022, its revenue fell 3% in the first three months of this year.

Apple is unwavering in its pursuit of a futuristic future, putting an emphasis on user-friendly interfaces and building a solid market position. Apple wants to outperform Meta’s current lineup of mixed reality and virtual reality devices, establish itself as the market leader and lay the stage for significant breakthroughs by releasing a more expensive gadget, the Apple Vision Pro.

In three African nations—Egypt, Tanzania, and Nigeria—Apple said that starting on July 25, 2023, it will change the prices for apps and in-app purchases. Both app developers and users in these markets are expected to be impacted by the price increases.

Author

Samson Ayodeji

I am literally obsessed with technology. I love writing about the latest news in technology in different markets, segments and sectors across the world.

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