Apple has experienced a decline in sales, despite robust demand for its iPhones and services, including the streaming platform Apple TV+.
The technology company reported a 1% decrease in revenues, amounting to $89.5 billion (£73.3 billion), for the three months ending on September 30, in comparison to the corresponding period of the previous year.
Sales of its Mac computers and iPads faced challenges following a surge in interest post-lockdown. This marks the fourth consecutive quarter where Apple has observed a decline in year-on-year sales.
In an investor update, Apple announced a record-breaking profit of $23 billion, driven by a new high in iPhone sales during the three-month period. The company also reported substantial earnings from services such as iCloud and Apple Music, generating $22.3 billion, which represented a 16% increase compared to the previous year.
However, Apple expressed concerns about potential supply chain disruptions that could impact the delivery of its new iPhone 15 Pro and Pro Max devices.
Apple chief executive Tim Cook said it was “working hard to manufacture more”.
“We do believe that later this quarter, we’ll reach a supply-demand balance,” he said.
Mr Cook said he felt the firm had its “strongest line-up of products ever” heading into the key Christmas trading period.
The most recent update indicates that certain Apple products have been struggling to maintain customer interest in recent times. For instance, sales of its Mac computers decreased to $7.6 billion for the quarter, down from $11.6 billion the previous year.
Apple unveiled its latest iPhone lineup in September during a highly anticipated event. During this event, it was announced that the iPhone 15 would no longer feature the company’s proprietary lightning charging port, a change that was enforced by the European Union. Instead, it now uses a USB-C cable, which is considered a “universally-accepted standard.”
Challenges have also arisen in other areas, including economic uncertainty affecting consumers in the Chinese market. Apple reported a 2.5% drop in sales in China, although CEO Tim Cook noted that, after accounting for foreign exchange rates, their business in China had grown year on year.
Cook made a surprise visit to China last month, where he met with gamers in Chengdu. This marked his second visit to China this year, which is a significant market for Apple. The company’s operations in China have been affected by COVID-19 restrictions and ongoing tensions between the US and China.
In March, Cook expressed that Apple had a “symbiotic” relationship with China, emphasizing its role as a key manufacturing base.