Apple had its second consecutive “bad” quarter. Bad, of course, is a relative term: the company’s revenue is down again, but Apple is still making a positively massive amount of money. Specifically, the iPhone and Services categories, which have been Apple’s biggest moneymakers for years, posted year-over-year gains. But this wasn’t enough to offset declines in the rest of the world: Mac, iPad, and Wearables/Home/Accessories divisions were down compared to a year ago. As such, Apple’s overall revenue fell a modest three percent year-over-year to $94.8 billion, while net income of $24.2 billion fell less than one percentage point. Like I said, it’s not exactly a bad quarter, but since the company’s sales and profits almost always rise, it’s worth noting when they don’t.
Robust iPhone sales (up two percent to $51.3 billion) marked a record for the quarter ending in March, even though the iPhone 14 and 14 Pro arrived last September. And Apple’s services business, which has been growing steadily over the past five years to outpace every other product the company offers (besides the iPhone, of course) hit another record with $20.9 billion in revenue (up five percent). more year after year).
Mac sales plummeted from $10.4 billion a year ago to just $7.2 billion last quarter, down 31% overall. That’s less than IDC predicted a month ago when it said Mac sales were down 40 percent, but the general forecast of greatly diminished interest still holds true. iPad sales weren’t hit as hard, but still fell 13 percent to $6.7 billion for the quarter despite major updates to the product line last fall. On a call with investors, CEO Tim Cook mentioned that the iPad and Mac categories faced difficult comparisons to their quarters a year ago because sales were very strong thanks to product upgrades, specifically the iPad Air M1 and MacBook. redesigned with M2 technology. Air.
Finally, the wearable/home device category, which encompasses products like AirPods, Apple Watch, and the HomePod line, fell less than one percent, so there aren’t any significant red flags on that.
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