Apple faces declining sales globally except in Europe, with a 10% drop in iPhone sales in the first three months of 2024. The company attributes the decline to supply disruptions due to the Coronavirus pandemic but remains optimistic for a rebound with upcoming product launches and AI investments.
Key Points
Apple's iPhone sales down 10% in the first three months of 2024, contributing to an overall sales decline of 4% to $90.8 billion.
Apple attributes the decline to Coronavirus-related supply disruptions.
Sales in greater China dropped by 8%, but iPhone sales were up in 'mainland' China.
Apple reported flat pre-tax profit for the three months at $28 billion and announced $110 billion for share buybacks.
Apple anticipates sales to rise in the 'low single digits' in the three months to June, with double-digit growth expected in services business.
Pros
Apple remains optimistic for a rebound in sales with upcoming product launches and investments in AI.
Despite the sales decline, Apple's results were not as poor as expected, leading to a small rise in share price.
Cons
Apple faces challenges in the global smartphone market with declining sales in almost every region except Europe.
Legal battles with regulators in the US and Europe over app store fees and an anti-monopoly lawsuit against Google pose additional challenges.