Apple reports surprising business figures – that’s behind it

Apple ended its second consecutive fiscal quarter with a revenue decline. The main driver was a decline in sales of Mac computers and iPad tablets, while sales of iPhones grew.

CEO Tim Cook told analysts that quarterly earnings were “better than expected.” Demand for new iPhones has increased, especially in emerging countries like Brazil, India and Mexico.

Apple especially hopes for India as a future growth market. It recently overtook China as the most populous country in the world.

24 billion profit in three months

All in all, Apple’s second-quarter revenue (early January to late March) fell 3 percent to $94.8 billion, the US company announced after the stock market closed on Thursday. The bottom line was a profit of $24.15 billion, up from about $25 billion in the previous year.

The iPhone business grew 1.5 percent to $51.33 billion. In the Christmas quarter, sales of the more expensive and more lucrative iPhone 14 Pro were delayed due to corona lockdowns in Chinese factories. As a result, there was catch-up demand in the past quarter. Meanwhile, smartphone sales had plummeted across the industry.

Mac sales fell 31 percent

Mac sales fell 31 percent to $7.17 billion. Computer sales had recently contracted significantly after the boom at the start of the corona pandemic. According to calculations by the market research firm IDC, PC sales across the industry fell 29 percent in the past quarter.

Apple in particular was hit hard with a drop of no less than 40 percent to 4.1 million. iPad sales also dropped significantly, while the services sector hit a record $20.9 billion.

Revenue from the app store, subscriptions and licensing fees flow into these categories. The segment is considered the most lucrative of the whole group, according to the “Handelsblatt”. Industry experts estimate that the return on sales for the app store could be over 90 percent.

Tim Cook announced a dividend of $0.24 per share and a $90 billion share buyback. Apple shares then rose more than 2 percent in after-hours trading in the US.

Sources

(dsc/sda/dpa)