Apple posts 1% year-on-year decline in sales for Q3 

Hopes pinned on new Macs to turn revenues around in final quarter

Trade

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Apple has posted third quarter results showing revenue of $89.5 billion, down 1% year-on-year.

Total sales for the year quarter from 30 September 2023 is $89.4 billion (€83.9 billion), compared to end of year quarter from 30 September 2022 with $90 billion (€84.6 billion). 

Products including mobile devices, desktop and laptops accounted for $67.2 billion (€63 billion). However Apple’s services business including iCloud, Apple Music and Apple TV booked an increase of 16% for the quarter to $22.3 billion (€20.9 billion).

Total sales for the 12 months ending 30 September were $383.2 billion (€359.9 billion), down from $394 billion (€370 billion) in 2022. Pending a strong final quarter this would represent the first full-year revenue decrease for the Cupertino-based company since 2019.

Sales of devices were driven by the iPhone as Macs and iPads continued their decline by 34% to $7.6 billion (€7.1 billion), and 10% to $6.4 billion (€6 billion) respectively. 

The figures reflect a broader shrinkage in the PC market, with analyst Canalys reporting a 12% decline on 2022 figures.

Despite the disappointing sales Apple CEO Tim Cook was bullish on the company’s prospects following the release of a new range of Macbooks and Macs using its proprietary M3 chips.

“Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in services,” he said.

“We now have our strongest lineup of products ever heading into the holiday season, including the iPhone 15 lineup and our first carbon neutral Apple Watch models, a major milestone in our efforts to make all Apple products carbon neutral by 2030.”

Luca Maestri, chief financial officer, Apple, said: “Our active installed base of devices has again reached a new all-time high across all products and all geographic segments, thanks to the strength of our ecosystem and unparalleled customer loyalty. 

“During the September quarter, our business performance drove double digit EPS growth and we returned nearly $25 billion to our shareholders, while continuing to invest in our long-term growth plans.”

Shares in Apple declined 2.5% to $173.13 in after hours trading.

TechCentral Reporters

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