Apple's Quarterly iPhone Sales Fall Once More
Apple has announced its steepest quarterly decline in iPhone sales since the start of the coronavirus pandemic, deepening a slump that's increasing the pressure on the company to improve its products with more artificial intelligence (AI).
The 10% drop in year-over-year iPhone sales for the January to March period is the latest sign of weakness in a product that generates most of Apple's revenue.
It marked the biggest drop in iPhone sales since the July to September period in 2020, when production problems caused by factories closing during the pandemic resulted in a delayed release of that year's model.
The current iPhone downturn was the main reason Apple's revenue for the latest quarter decreased 4% from last year to $90.8 billion. It marked the fifth consecutive quarter that Apple's revenue dipped from the previous year.
But both Apple's revenue and earnings per share came in slightly above analyst projections, according to FactSet Research. Apple also predicted its revenue for the April to June quarter will rise modestly from a year ago.
Part of the iPhone deterioration during the first three months of the year stemmed from a big boost in sales during the same period last year when Apple said it was filling demand caused by pandemic-driven shipment delays.
Even as it stumbles slightly, Apple remains one of the world's most prosperous companies.
However, investors have been worried by weakening iPhone sales and they are also concerned Apple may be losing its edge as other tech giants such as Microsoft and Google get ahead in their use of AI technology that is expected to reshape the industry.
Apple is expected to unveil more AI services in June during an annual conference showcasing the next version of its software for the iPhone and Mac computers.
"We believe in the transformative power and promise of AI and we believe we have advantages that will differentiate us in this new era," Apple CEO Tim Cook assured analysts.
