• Apple says it is still seeing sales on its devices trailing behind what it saw in previous years.
• Revenue on iPhone devices, Macs and iPads were all down in the latest quarter.
• Despite this, its services wing which includes Apple Music and Apple TV+ saw record profits as consumers seem more willing to spend on smaller monthly fees.

The makers of the iPhone said that revenues for the latest quarter fell 1 percent to $81.8 billion and despite still raking in more money than some small countries, this latest slump marks a third consecutive year-over-year drop in quarterly revenue. Though still performing better than rival Samsung.

A wide-ranging economic downturn spurred by lingering effects of the COVID-19 pandemic and Russia’s war on Ukraine among other factors has led to increased inflation rates and higher interest. Consumers are spending less on luxuries as the cost of living rockets which means fewer people will be willing to fork out nearly R30 000 for an iPhone 14 Pro.

CNN reports that Apple managed to beat estimates from Wall Street, but still marked significant slumps across its product segments. Revenue for iPhone devices came in at $39.7 billion, a 2 percent decline from last year. Mac sales were also down by 7 percent, and most worryingly iPad revenues saw a 20 percent decline year-on-year making the signature tablets from the Cupertino firm the worst-performing product in the quarter.

Despite this, revenue for its services arm, including Apple Music and Apple TV+, reached an all-time high which coincides with the latest data from Spotify. The audio streaming platform saw positive results in the quarter with more premium subscribers and nearly 1 billion monthly active listeners.

It seems that while gadgets and products like a smartphone are beyond consumers, subscription services are still popular probably due to smaller monthly fees instead of large singular payments.

“We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone,” shares Apple CEO Tim Cook in a call.

“Looking ahead, we’ll continue to manage for the long term, always pushing the limits of what’s possible and always putting the customer at the centre of everything we do,” Cook said.

Despite sharp consumer hesitation around spending on new gadgets like smartphones, Apple is set on pushing ahead with its upcoming latest smartphone, the iPhone 15 which could launch worldwide in September.

Another major product in the offing for Apple is the Vision Pro headset which is slated to be the most advanced device the company has fashioned, but its hefty price point of around R67 4478 could present a major barrier for any real wide adoption. Perhaps with this in mind as well as reduced customer spending, Apple has reportedly scaled back production of the dear headsets.

[Image – Photo by Michał Kubalczyk on Unsplash]