Image source: Apple Toolbox
Despite the economic crisis, Apple has managed to release some positive numbers, most of which can be attributed to its smartphone business.
With iPhone sales, the industry rarely notices flaws in Apple’s practices. In fact, iPhone sales have been solid, according to last quarter’s report.
But there are a lot of concerns behind performance.
Last week, Apple released a quarterly report that inspires confidence in the market amid supply chain challenges, the recession and the impact of the pandemic.
The company’s third quarter earnings ($83 billion) were in line with Wall Street expectations.
iPhone sales accounted for more than half of sales and exceeded analysts’ expectations.
Apple expected supply chain revenues to be $ 8 billion, but the results suggest that this was just an exaggeration.
Despite strong iPhone sales, other products haven’t found the same success.
Decline in revenues
In addition to the iPhone, Apple has three main products: Mac, iPad and wearable devices.
Both products had lower sales than the same period last year, but the iPad outperformed analysts’ expectations, while the other two underperformed.
An earlier analysis stated that a decline in Macs was expected, but analysts were unable to predict such a decline.
The MacBook Air and MacBook Pro are Apple’s flagship laptops, and quarterly sales have been stable for around four weeks.
However, the sales will release M2 versions of the MacBook Air and MacBook Pro in the coming weeks.
The MacBook Pro was launched on June 26 and the Air on July 15. Sales stalled due to launch delays, and third quarter Mac sales were about $ 1 billion less than a year ago.
Mac sales are expected to improve next month and many are optimistic about the category.
People also believe that the decline in income is temporary.
Experts predict significant growth of the MacBook Pro and MacBook Air in the last quarter of the fiscal year.
Apple is also expected to gain momentum later this year with the launch of a new Mac mini and a more expensive MacBook Pro.
MacBook sales outpaced iPad sales, which was a big deal for Apple.
Over the past year, many shoppers have reported that they can’t find the tablets they want in stores.
Industry insiders found that the iPad Air and iPad Pro were too similar, confusing buyers.
Furthermore, the shortcomings of the Pro model were disadvantages when it came to multitasking.
Apple attributed the drop in iPad Pro sales to a drop in tablet sales. However, the company did not face a demand problem due to the supply shortage.
Other slow-selling Apple products include Apple Watch, AirPods, Beats headphones, HomePods, and Apple TV.
Product sales have been hit hard by supply chain problems, the Russian invasion and chip shortage.
Apple CEO Tim Cook highlighted the economic impact of wearables and says the economy is curbing people’s appetite for the product.
He pointed out that AirTags could be one of the reasons for the decline.
However, Apple TV was also updated in the third quarter of 2021. Despite these two factors, they weren’t enough to explain the $750 million decline in annual sales. to recruit
In an interview with Bloomberg TV, Tim Cook revealed that Apple will continue to hire and invest “meaningfully” during the recession.
The company is reportedly in a difficult position internally with limited staff growth.