For Apple, India the only saving grace as quarterly revenue declines, profit from services go up YoY

Apple has seen a decline in its sales, even as the demand for iPhones and services like Apple TV+ remains robust. The tech giant disclosed that its revenues dropped by 1 per cent to $89.5 billion in the three months ending on September 30, compared to the same period the previous year. This marks the fourth consecutive quarter of year-on-year sales decline for Apple The good news, however, is that Apple reported a profit of $23 billion, thanks to record iPhone sales during the same three-month period. The company also saw increased revenues from services such as iCloud and Apple Music, generating $22.3 billion, a 16 per cent increase from the previous year. Despite these positives, Apple highlighted concerns about potential supply chain issues affecting deliveries of its new iPhone 15 Pro and Pro Max devices. Apple’s CEO, Tim Cook, assured investors that they are diligently working to increase production and anticipate reaching a supply-demand balance later in the quarter. Cook also expressed confidence in the company’s product lineup as it approaches the crucial holiday season, stating, “We do believe that later this quarter, we’ll reach a supply-demand balance.” The report pointed out that Apple’s Mac computers and iPads struggled after experiencing a surge in interest following lockdowns. Mac computer sales dropped to $7.6 billion, down from $11.6 billion the previous year. While Apple’s iPhone sales were strong, the company faced challenges in other areas, including economic uncertainty affecting consumers in the Chinese market. Despite a 2.5 per cent dip in sales in China, Cook emphasized that, when accounting for foreign exchange rates, Apple’s business in China grew year-on-year. Apple’s reassurances come amid concerns that the company is facing competition from resurgent Chinese smartphone maker Huawei Technologies and other local brands. Cook mentioned that Apple set a quarterly record for iPhone sales in mainland China, with four of the top five best-selling smartphones in urban China being iPhones. The company expects to sell more iPhones in the holiday quarter, even with one fewer week of sales compared to the previous year. Amidst all of this, India has been one of Apple’s saving grace this year given that revenue and profit from India is at a record high. “We achieved an all-time revenue record in India as well as September quarter records in several countries, including Brazil, Canada, France, Indonesia, Mexico, the Philippines, Saudi Arabia, Turkey, the UAE, Vietnam, and more,” said Cook. Cook also added, “We had an all-time revenue record in India, we grew very strong, by double digits. It’s an incredibly exciting market for us and a major focus of ours. We have a low share in a large market and so it would seem that there’s a lot of headroom there. We see an extraordinary market.” Luca Maestri, Senior Vice President and Chief Financial Officer, Apple said, “We are particularly pleased with our performance in emerging markets with revenue reaching an all-time record in fiscal 2023 and double-digit growth in constant currency. We are expanding our direct presence in these markets with new Apple Retail Stores in India.”