Apple Reports Decline in iPhone Sales Across Global Markets Except Europe

By Caroline Ameh

Apple, the technology giant, has released its latest quarterly results, Friday, revealing a notable decline in iPhone sales across almost every market worldwide.

 

According to the company’s report, demand for its smartphones plummeted by over 10% in the first three months of this year, with sales experiencing a downturn in every geographic region except Europe.

 

Despite the overall decrease in sales, Apple’s revenues for the quarter amounted to $90.8 billion, marking a 4% decline, the largest drop seen in over a year.

 

However, the results surpassed expectations, leading to a rise in Apple’s share price during after-hours trading in New York.

 

Apple attributed the decline in sales to disruptions caused by the Covid-19 pandemic, which had resulted in unusually strong sales during the same period last year.

 

The company assured investors that sales would rebound in the months ahead, citing upcoming product launches and investments in artificial intelligence (AI).

 

In China, one of Apple’s critical markets, iPhone sales experienced an 8% drop. Despite this decline, Apple’s CEO, Tim Cook, sought to reassure investors about the company’s performance in the world’s second-largest economy, noting that iPhone sales actually increased in mainland China.

 

Cook expressed optimism about China’s long-term prospects, despite intensifying competition from local rivals like Huawei. Analysts noted that while Huawei performs well in China due to its homegrown appeal, the iPhone maintains an advantage in terms of features, functionality, and brand prestige.

 

Apple’s struggles come at a time when the wider smartphone market is experiencing contrasting trends. Globally, smartphone shipments saw a 10% increase in the first quarter of the year, according to research firm Canalys.

 

Analysts highlighted the need for significant improvements to Apple’s handset lineup, with the last major upgrade being the iPhone 12, launched nearly four years ago. Anticipation is growing for the iPhone 16, expected to be released later this year, with hopes that new AI features will stimulate a surge in upgrades.

 

In addition to sales challenges, Apple is facing legal battles with regulators in the US and Europe over its app store fees. A separate anti-monopoly lawsuit against Google threatens Apple’s revenue from payments received for making Google the default search engine on its Safari browser.

 

Despite these challenges, Apple remains financially robust, with pre-tax profits remaining flat at $28 billion for the quarter. The company announced plans to allocate $110 billion for share buybacks, indicating confidence in its long-term growth prospects.

 

Looking ahead, Apple anticipates low single-digit sales growth in the next quarter, with double-digit growth projected in its services business.

 

Analysts remain optimistic, citing resilience in the Chinese market and forthcoming product launches as potential catalysts for improved investor sentiment.