Apple Revives Sales After 2022-2023 Decline
Apple, founded by Steve Jobs and under the leadership of Tim Cook, is back on the path to growth for the 2023-2024 financial year. The company saw an increase in revenues despite a decline in sales in China.
The first quarter of the new fiscal year (between October and December) saw Apple record revenues of 119,575 million dollars, marking a 2% increase from the same period in the previous year. Additionally, the company saw its profits grow by 13% to $33,916 million.
Previously, Apple experienced a downward trend in sales, particularly in China. This was evident as sales fell 5% year-on-year in the Christmas quarter, and the decline persisted for the second and third quarters. However, in the fourth quarter, sales decreased only 0.7%. The first quarter of the new year marked a turning point.
The growth was largely attributed to the iPhone, which saw a strong improvement in sales, despite the burden of declining sales in China. The company’s business in China has been impacted by a range of factors including competition and government hostility towards foreign technology.
Despite cooling consumption and government hostility in China, the company saw growth in all other markets, with the United States, Europe, Japan, and the rest of Asia-Pacific all contributing to the positive trend.
Apple faced a decline in sales for other devices like the iPad, Mac, and accessories. However, the billing for services increased by 11%, even more than the iPhone in relative terms.
The company is now focused on the launch of its Vision Pro virtual reality glasses. Tim Cook, CEO of Apple, highlighted the revenue growth driven by iPhone sales and the all-time record in revenue from services. He also announced the launch of the Apple Vision Pro.
In relation to the financial performance, Luca Maestri, chief financial officer, mentioned that they generated nearly $40 billion of operating cash flow and returned nearly $27 billion to shareholders during the quarter. The company’s board of directors approved a cash dividend of $0.24 per share, payable on February 15 to shareholders of record as of the close of February 12.
While Apple shares fell by around 3% on the stock market after the earnings report was revealed, the overall financial performance exceeded forecasts in both revenue and profits.
The company remains confident in its future, making significant investments across its business to support long-term growth plans. Moving forward, all eyes are on the launch of the company’s new virtual reality glasses.