Apple Reports 10% Drop In iPhone Sales For Second Fiscal Quarter

iPhone maker Apple just reported a 10% decline in iPhone sales for the second fiscal quarter. Figures went from $51.3 billion to $45.9 real quick YoY.

The massive slowdown appears to have arisen due to the decline in Chinese markets which further resulted in a 8% fall in sales.

The tech giant’s slow incorporation of the world of AI versus arch rivals Google and Microsoft is another factor worth considering that stopped many from buying the iPhone. The company vowed to get big announcements on this front including the arrival of iPhone 16 having greater AI features but that will not be rolled out until the fall of 2024.

It was already unveiled by the iPhone maker’s CEO how restocking the inventory and fulfilling the demand of the market since the end of the pandemic was always high on the list. This was witnessed in past earnings calls where sales kept on boosting upwards.

Despite such major hardware figures, we’re watching the company fight back and go beyond the expected estimates of Wall Street where stocks were on the rise by more than 6%.

This had to do with a massive $110 billion share buyback and rise in revenue.

Plenty of Apple’s services which entail offerings such as iCloud and Apple Music were similarly doing great with a rise of 14% for this year. For a while now, the company has continued to anticipate a drop in sales for its hardware division and is now focusing more on endeavors like subscriptions which continue to arise from similar losses.

Apple does hope to reach bigger targets and enable businesses to rise in double figures at an exponential rate sooner than what we saw in the first part of this fiscal year. The iPad will certainly rise in double figures too, it added.

For now, the firm seems to be focusing more on the likes of two new iPad launches at a top event that will occur next week. Remember, we haven’t heard or seen Apple refresh this tablet since forever so if there’s a decline in sales, we can relate as to why.

During Tuesday’s event, Apple was seemingly expected to roll out its M4 chip which it says is a part of its top-of-the-line hits for new additions in the silicone world. But more competition from arch rivals like Microsoft would be challenging it who would also be experimenting with its own launch of chip hardware. More details will be followed at this year’s Build conference.

For now, we can confirm that Apple isn’t breaking out figures for Vision Pro. We are more focused on figures found across wearables accessories and homes. So products like watches, AirPods, and even HomePods are reigning supreme as we speak.

There is a lot to anticipate and we mean Apple seems to be hiding many things up its sleeve and perhaps waiting for its top conference to make the announcements. But until that happens, we are expecting to witness Apple adding both ChatGPT and Gemini to a host of its iPhone lineups.

Generative AI is a vast field and Apple agrees that while it’s quite behind in the race, it’s never too late to begin and use this as a chance to better its offerings. They’ve got plenty of advantages that set them apart from the masses and as time passes, things are set to become so much more clearer.

Slow AI integration and Chinese market decline contribute to Apple's 10% iPhone sales drop in Q2.
Image: DIW-Aigen

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