Apple’s shares fell 2% despite better-than-expected revenue. Android phones are challenging Apple’s iPhone in a saturated market. The June-announced Vision Pro mixed reality headset has yet to be ready.
In its third fiscal quarter, which ended July 1, sales fell 1.4%—$ 81.8 billion. EEPS rose 5% to $1.26. Experts anticipated $81.69 billion and $1.19 per share for Apple. China sales rose 8% for Apple TV+ and other services.
Apple’s CFO, Luca Maestri, indicated the corporation is cautious about the future. The company expects the September-ending fourth quarter to be worse than the third. Experts predicted sales of $90.19 billion for the last three months of the year, which fell short.
Futurum Group CEO and Principal Analyst Daniel Newman said people are apprehensive about how fast iPhone sales are expanding and when they will grow.
Apple believes selling Apple TV+, iPads, and Macs will be costly. R&D spending increased this year. Last year they spent $3.12 billion less. CEO Tim Cook stated Apple is investing more in R&D. They are investing heavily in intriguing artificial intelligence technology, which other big tech companies are also developing.
Second-quarter iPhone sales in China dropped 8%. This horrible hasn’t happened in almost ten years. Apple succeeded. iPhones outperformed most other phone brands in China. This increased China sales from $14.60 billion last year to $15.76 billion this year.
Services earned $21.21 billion for Apple—this much cash stunned experts. Cook said one billion people utilize Apple’s ecosystem, including third-party apps and services.
Apple Watch and AirPod sales generated $8.28 billion—less than expected. The Mac and iPad outsold our expectations. Mac sales were $6.84 billion, iPad $5.79 billion.
Apple is considering its earnings call despite the declining smartphone market. Vision Pro or AI could aid their corporate planning on this call.