Apple’s $3 trillion valuation might be in jeopardy as the company’s Q3 result has revealed yet another decline in the company’s revenue. This decline is as a result of a slowdown in iPhone sales. According to the company’s Q3 results, iPhone raked in $39.67 billion, down from $40.66 billion in the same quarter last year.
This decline would be the company’s third consecutive quarterly revenue drop, and according to its report, could witness yet another drop in revenue for the fourth consecutive quarter. Following the report, the company’s share price dropped as much as 2.2% in US premarket trading on Friday. Analysts are of the opinion that a continuous downside would soon see Apple lose its valuation as the most valuable company in the world.
However, Apple’s sustained success in services reduced the hardware slowdown as revenue from services grew from $19.6 billion to $21.2 billion, year over year, exceeding analyst estimates.
“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,” CEO of Apple Inc, Tim Cook said in a release.
Tim Cook also said from the education sector to the environment, the company is advancing its principles while championing innovation that improves customers’ lives, to make the world a better place for humans and technology exploration.
As seen in the Q3 report, Apple’s performance over the year was also driven by sales in China which increased by 8% year on year. the California-based company claims to have increased its market share in the world’s largest smartphone market.
Additionally, AI and ML have become fundamental technologies, and they are virtually embedded in every product that the company builds, according to the CEO in an interview with CNBC. Also, on a research basis, the company has been doing research on AI and machine learning, including generative AI, for years.
Highlights from Apple’s Q3
The company’s performance in Greater China, which includes Hong Kong and Taiwan in addition to the mainland, was deemed to be notable. After falling in the previous quarters, sales in the aforementioned region increased by 8% year on year to $15.76 billion. It is recorded as Apple’s third-largest sales region, and the CEO referred to it as a “definite acceleration.”
“The reasons for this are that we did extremely well in switchers for iPhone during the quarter.” “Based on the reports we have seen, we believe we gained share in the smartphone industry in China for the quarter,” Tim Cook told CNBC.
Apple in previous months
The iPhone maker became the first publicly traded company to close a trading day with a $3 trillion market value. The company’s market valuation hit $3 trillion in June, making it the first publicly traded company to touch the milestone twice.
Apple’s sales have continued to fall as the economy slows and buyers, squeezed by rising prices, put off purchases of computers and iPads. The tech giant said weeks ago that its revenue slipped 3% in the first three months of this year compared with the same period in 2022.
Apple remains steadfast in its pursuit of a visionary future, prioritizing intuitive user experiences and establishing a strong market presence. By introducing a higher-priced device, the Apple Vision Pro, Apple intends to surpass Meta’s existing line of mixed and virtual reality offerings and position itself as an industry leader, setting the pace for significant advancements.
Apple announced that it will update its pricing for apps and in-app purchases from July 25th, 2023 in three African countries i.e. Egypt, Tanzania, and Nigeria. The price changes are set to impact both app developers and consumers in these markets.
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