Apple Hits 'All-Time-High' in Services Revenue Amid Weak iPhone Sales

Apple announced a modest increase in quarterly profits Thursday, despite a decline in revenues as a record service performance offset weak iPhone sales.

Apple Hits an 'All-time-High'

According to AFP, the tech giant's profits for the third fiscal quarter reached $19.9 billion, marking a 2.3 percent rise from the same period last year. However, revenues experienced a 1.4 percent dip, totaling $81.8 billion.

Apple reportedly achieved a notable milestone in services revenue during the quarter, reaching an "all-time high." This segment includes earnings from the App Store, Apple Pay, Apple TV, and other subscription services.

The company also saw an improvement in revenues from China, rebounding from the previous quarter's dip compared to last year. While sales showed an upward trend in Europe, they declined in the Americas, Japan, and the rest of the Asia Pacific region.

The iPhone, a significant revenue contributor for Apple, experienced a 2.4 percent decrease in sales, contributing to the overall revenue decline. Revenues from the Mac and iPad segments dipped as well.

Apple has attributed the sluggish sales performance in certain regions to broader macroeconomic influences, particularly the impact of inflation on household budgets.

Apple's Chief Executive Officer Tim Cook underlined the accomplishment of an all-time high in revenue from Services and emphasized robust iPhone sales in emerging markets.

In response to the earnings report, Apple's stock encountered a slight dip of 1.0 percent, ultimately stabilizing at $189.28 in after-hours trading, as AFP reported.

Apple Vision Pro Losing Steam?

In recent developments, Apple made a significant announcement by unveiling the Apple Vision Pro, a major addition to its hardware lineup.

Despite capturing considerable attention, mainly due to its price point, the device faced challenges in garnering the initial level of developer interest anticipated by the company. The reported discrepancy was noticed in the underwhelming participation in the Vision Pro developer labs sessions.

Positioned as Apple's venture into "spatial computing," the Apple Vision Pro headset struggled to attract the desired volume of developers. Reports indicated that these sessions are poorly attended, with only a limited number of developers engaging.

The launch of the Vision Pro headset generated substantial anticipation during Apple's World Wide Developer Conference 2023 in early June. However, Apple clarified that consumers would need to wait until early 2024 to acquire the device.

To rekindle developer enthusiasm, Apple has outlined a strategy to introduce the product within its developer community. This approach aims to build anticipation and motivate developers to initiate their work for the platform.