Apple announced on Thursday that it had achieved a new revenue record from iPhone sales, driven by strong demand in China and emerging markets. However, despite the impressive results in Q3, Apple’s overall performance showed a continued downward trend.
Just before the quarter in question began, Apple made history by becoming the first company to achieve a valuation of $3 trillion. The positive news continued for investors, as Apple reported returning nearly $25 billion to shareholders during this period.
The iPhone sales alone brought in a substantial $43.8 billion, thanks in part to price increases and the launch of the iPhone 15. The starting price for the iPhone 15 Pro Max reached $1,200, which was $100 more than its predecessor, and in the UK, these devices were priced at £999 and £1,199 for the larger screen version.
Apple also increased the cost of subscription products, including their video streaming service, now priced at $10 per month, or £8.99 in the UK.
Despite the challenges, the remarkable performance of iPhone sales, combined with an all-time high in services revenue, allowed Apple to surpass Wall Street’s expectations in terms of both overall sales and profits.
The services revenue, which included contributions from the App Store, iCloud, advertising, and payment services, offset significant declines in Mac and iPad sales. Nevertheless, Apple’s overall revenues have declined for the fourth consecutive quarter, totaling $89.5 billion, down 1% compared to the same period the previous year.
This decline was attributed to reduced customer demand, influenced by inflation and increased borrowing costs, along with a 2% decrease in revenue due to foreign exchange rate fluctuations. Supply chain challenges also persist at Apple, with CEO Tim Cook acknowledging constraints in the production of the iPhone 15 and new Pro Max models. These issues were exacerbated by COVID-related disruptions in China, where iPhones are manufactured.