The iPhone maker is defying the bleak prospects on the smartphone market.
(Photo: AP)
san francisco Surprisingly strong iPhone sales gave Apple a good fiscal quarter. While sales of Mac computers and iPads fell short of analysts’ expectations, iPhone sales performed significantly better than expected. The company’s total sales fell slightly by 2.5 percent to around 95 billion dollars. It was the second decline in sales in a straight quarter.
The quarter went “better than expected,” Apple CEO Tim Cook said in an interview with analysts. “It was a particularly good quarter for sales of iPhones. This is especially true when comparing to the market as a whole,” said Cook. The company generated $51 billion in smartphone sales, up nearly 2 percent sequentially. Other smartphone manufacturers, on the other hand, suffered from economic concerns and difficulties along their supply chains. Market researcher IDC assumed a 15 percent decline in smartphone sales for the quarter.
However, Apple does not seem to be able to completely escape the difficulties in the electronics industry. Mac and iPad sales failed to meet analyst expectations. Cook had warned of difficulties in both areas a quarter ago.
Surprisingly strong iPhone sales: Apple shares rose in after-hours trading
Apple’s Mac business fell more than 31 percent to just over $7 billion. CEO Cook attributed this to two reasons. “One is the economic situation in general,” said the Apple boss. The other reason is that in the previous year, device sales benefited from particularly strong models. Among other things, Apple had made the self-developed M1 chip available in more devices. iPad sales fell nearly 13 percent to $6.7 billion.
On the other hand, Apple was able to further increase its service sales. “We’ve set a new record,” Cook said. Apple reported $21 billion in services revenue. This corresponded to an increase of around 5.5 percent compared to the same period of the previous year. Income from the App Store, as well as subscriptions or license fees flow into these categories. The segment is considered the most lucrative in the entire group. Industry experts estimate that the return on sales for the App Store could be more than 90 percent.
Cook announced a dividend of $0.24 per share and a $90 billion share buyback. Apple shares then rose more than 2 percent in after-hours trading in the US.
Apple also wants to convince India of the iPhone in the future
The People’s Republic of China is one of the most important markets for Apple. Sales there went down. Apple does not break down China as a separate market, but summarizes it with Taiwan. For the region, Apple reported sales of $17.8 billion after $18.3 billion in the same period last year.
On the other hand, Cook underlined his hopes for India as a future growth market for Apple. India recently overtook China as the most populous country in the world. Last month, Cook visited the subcontinent, opened the first two Apple stores there and met Prime Minister Narendra Modi. Apple is also in the process of relocating part of its production from China to India via its contract manufacturers.
Many people may soon join the middle class in India, Cook said. It is a great opportunity for Apple to convince at least some of them of iPhones and other products.
Apple’s market share in India is growing. However, new iPhones still seem to be too expensive for many buyers in India. After one percent in 2019, Apple recently had a market share of five percent, according to calculations by market researcher Counterpoint. According to calculations, Apple was able to significantly expand its position on the market for used smartphones. Second-hand iPhones accounted for eleven percent of the market. Two years earlier it was only three percent.
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