Sales Drop in Apple’s Third Quarter but Top Wall Street Expectations
The tech industry limped through much of 2022 because of weak digital ad, e-commerce and computer sales. The downturn led Meta, Alphabet, Microsoft and Amazon to lay off thousands of workers and spurred companies across Silicon Valley to cut back on perks such as free laundry services for employees.
Though Apple avoided layoffs, it is now dealing with how much the pandemic turbocharged its business. Sales of iPads and Macs exploded as people began working from home, but new purchases of tablets and computers have sputtered over the past year. In the latest quarter, iPad sales decreased 20 percent, to $5.79 billion, and Mac sales declined 7 percent, to $6.84 billion, the company said.
Apple’s share price fell about 2 percent in after-hours trading after the company projected that sales in the current quarter would be similar to the April-to-June period, as accelerating iPhone and software sales are offset by double-digit declines in sales of Macs and iPads.
Apple continues to be buoyed by the resilience of its iPhone business. While smartphone rivals Samsung and Vivo have experienced sharp declines in sales of low-priced phones, Apple has increased its market share and expanded its sales in emerging markets and China. The company is benefiting as tech-savvy customers with deeper pockets opt to spend more on phones with sophisticated features. Monthly payment plans make it easier to pay for those devices.
In the June quarter, the company made $39.67 billion from iPhone sales, down 2 percent from a year earlier. In China, where total smartphone industry sales fell 4 percent during the quarter to their lowest levels since 2014, iPhone sales increased 7 percent, according to Counterpoint Research, a technology research firm. That helped Apple post 8 percent sales growth in China, bucking the broader malaise buffeting the world’s second-largest economy.