The weak PC market hits the Mac division particularly hard. The iPhone division shines, however, with a new sales record for a March quarter.
Apple ended its fiscal quarter (ended April 1) with a decline in sales and profits. Revenues fell 3 percent to $94.8 billion while net profit increased 3 percent deteriorated to $24.16 billion. Despite this, the company reported two new records: the highest iPhone sales in a March quarter and an all-time high for its Services division’s sales.
“We are pleased to report a new record for services and a record for iPhone in the March quarter, and that our active device base hit a new all-time high, despite the challenging macro environment,” said Apple CEO Tim Cook. “We continue to invest for the long term and are guided by our values. This also means that we are making great strides towards climate-neutral products and supply chains by 2030.”
Services division with almost $21 billion in sales
Investors agreed with the positive assessment of the Apple boss after the market closed. Apple shares are up 2.49 percent, or $4.13, steadily in after-hours trading to $169.92 from a recent 52-week high of $176.15.
For the iPhone division, the balance sheet shows revenue of $51.33 billion, up 1.5 percent from the same period last year. Services — Apple’s second-biggest source of revenue — generated $20.91 billion, up about 5.5 percent.
All other business areas paid tribute, in some cases significantly, to what Cook described as the “difficult macroeconomic environment”. Wearables and home sales fell 1 percent to $8.76 billion. The iPadThe division lost 13 percent of its sales compared to the same period last year and slipped to 6.67 billion dollars. The Mac division, which reported $7.17 billion, posted the biggest drop in sales: minus 31 percent – which, however, corresponds to the overall trend of the PC market in the first quarter.