(New York) Apple posted another third straight revenue decline (-1.4%) in the third quarter of its lagged fiscal year, marked by a deceleration in iPhone sales , the group announced on Thursday.
Net income and quarterly revenue were $19.9 billion (2.3%) and $81.8 billion, respectively, Apple said in a statement, performance above analysts’ expectations.
The group’s locomotive for more than a decade, the iPhone suffered this quarter, with sales down (-2.4%) more marked than the market expected.
This stall is partially compensated by the services activity, which includes the App Store application store, the Apple Music streaming platform or remote data storage services (cloud).
This branch of the Cupertino (California) group now weighs more than a quarter (26%) of the company’s turnover, which was originally entirely focused on its computer and connected equipment, from the Apple II to the iPhone.
The American apple giant now has more than a billion subscriptions to its various services, said its general manager, Tim Cook, quoted in the press release, up 150 million over the last 12 months.
“Apple’s results illustrate the strategic shift towards services, which are becoming essential”, commented Insider Intelligence analyst Jeremy Goldman, noting that this activity was “significantly more profitable than the physical products on which it has built his reputation. »
Another growing segment is connected products, which grew by 2.4% year-on-year.
In contrast, Mac (-7%) and iPad (-20%) sales declined.
Geographically, Apple saw its sales in China accelerate by 7.9% year-on-year, after contracting in the previous quarter.
But revenue fell in the rest of Asia and the United States, while Europe held up well.
“We declined in the US because the smartphone market has been in decline for several quarters,” Chief Financial Officer Luca Maestri said at the earnings release press conference.
“It’s getting harder and harder to get customers to replace their devices as frequently” as in the past, given their price and less buoyant economic conditions, said Insider Intelligence’s Jeremy Goldman.
The CFO said the group expects Q4 (early July to early October) results to be “similar” to the previous three months.
“We expect iPhone and Services to accelerate” in the quarter, Luca Maestri said, while Mac and iPad are expected to see double-digit declines.
Mac and iPad sales should suffer from an unfavorable comparison effect, because in the fourth quarter of 2022, the group was able to catch up on production delays linked to the closure of sites in the spring, due to cases of coronavirus.
In electronic trading after the New York Stock Exchange closed, Apple’s stock was down more than 2%.
Apple has seen its gross margin rate increase significantly, to 44.5% from 43.2% and expects to see it between 44 and 45% in the current quarter, a historically high level, highlighted Luca Master.
