Apple’s sales increased by 6% in the third and fourth quarters of this year, and net profit decreased by 35% due to one-time factors.
Apple “iPhone 16 series sales are better than iPhone 15”
Sense of crisis continues as iPhone sales decline in the Chinese market
The iPhone 16 series, which Apple released last September, produced good performance for Apple from July to September this year. AFP Yonhap News
【Silicon Valley = Correspondent Hong Chang-ki】
As iPhone sales slightly increased, Apple recorded its highest ever quarterly sales in the third and fourth quarters of this year. Apple expected that demand for the iPhone would increase further when Apple’s artificial intelligence (AI) system ‘Apple Intelligence‘ began to be used on the iPhone.
On October 31, Apple announced that its sales in the third and fourth quarters of this year (Apple’s fiscal fourth quarter) recorded $94.9 billion, a 6% increase compared to the same period last year. Net profit was $14.7 billion, down about 35% from the same quarter last year due to a European judiciary ruling that Apple owed more than $14 billion in taxes to Ireland. Earnings per share (EPS) is 0.97.
Sales of the new ‘iPhone 16 series’ are sluggish in the US and China
By far, it was iPhone sales that generated Apple’s highest quarterly sales ever. iPhone sales account for more than half of Apple’s sales. iPhone sales in the third and fourth quarters of this year recorded $46.2 billion. Compared to the first half of this year, when iPhone sales were sluggish for two consecutive quarters, iPhone sales showed a turnaround.
“Sales of the iPhone 16 in the first eight days of this quarter were better than those of the iPhone 15,” said Luca Mastri, Apple’s chief financial officer. “The increase in iPhone sales is positive,” said Charles Rinehart, chief investment officer at Johnson Investment Counseling, an Apple shareholder. “It shows that people who bought an iPhone three or four years ago are ready to upgrade their iPhone.” said. CIO Reinhart then emphasized, “This growth of the iPhone before AI features are launched in earnest is very encouraging for Apple.”
However, iPhone 16 sales in the United States did not appear to be higher than the previous model.
According to Consumer Intelligence Research Partners, the new iPhone 16 model accounted for 20% of all iPhone sales in the United States in September this year. This is a 9 percentage point decrease from the 29% market share of the iPhone 15 lineup released in September last year.
The sluggish iPhone sales continued in China as well. Apple’s iPhone sales in China this quarter hit $15 billion. There was a slight decrease compared to the same period last year. It was about 6% below analyst expectations. Counterpoint Research believes that strong iPhone sales in China may not continue with the launch of Huawei’s latest smartphone.
Apple CEO Tim Cook is introducing Apple’s new iPhone, the iPhone 16 series, at Apple headquarters in Cupertino, California, on September 10. Shinhwa Yonhap News
Sales of devices other than iPhone are ‘well’
Apple CEO Tim Cook appeared on CNBC that day and said, “iPhone 16 sales were better than iPhone 15 sales.” CEO Cook then explained, “As we begin distributing the software operating system (OS) iOS 18.1 this week, we have high expectations for Apple Intelligence, our AI system.” He added, “Apple Intelligence is already receiving great response from customers and developers.” Apple added that iOS 18.1 is being downloaded and used at twice the speed of iOS 17.1.
Apple service sales in the third and fourth quarters of this year reached $25 billion, an increase of approximately 12% compared to the same period last year. Although it fell slightly short of analysts’ expectations of $25.3 billion, it continues to grow steadily. Apple’s services division includes subscription services such as iCloud, Apple Pay, and Apple Music.
Although iPhone sales have increased, Apple is having difficulties with its newly released devices. The virtual reality (MR) headset Vision Pro, which has been on sale since February of this year, is selling poorly due to its high price of $3,499.
On this day, Apple’s stock price closed at $225.91, down 1.82% from the previous trading session on the New York Stock Exchange.
However, after Apple’s earnings were announced, the stock price decline was reduced to 1.50% in after-hours trading. Craig Federighi, Apple’s senior vice president of software engineering, is presenting ‘Apple Intelligence’, a personal AI system that can be used on iPhone, iPad, and Mac, at WWDC24 held on June 10 (local time) this year. provided by apple
[email protected] Reporter Hong Chang-ki
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