- iPhone revenue peak.
- Services boost profits.
- Supply chain challenges persist.
Increases in prices assisted in surpassing certain revenue milestones and surprising Wall Street.
The iPhone achieved a new revenue peak on Thursday, the company reported, citing increased demand in China and emergent markets as the primary drivers.
iPhone Demand Drives Growth
Despite the strong revenue in the third quarter, Apple was unable to rectify the overall performance decline.
The iPhone alone generated a revenue of $43.8 billion (£35.9 billion) following price increases and the introduction of the iPhone 15.
The iPhone 15 Pro Max was available for a starting price of $1,200, which was $100 more than the previous year’s model. In the United Kingdom, the device is priced at £999, with the larger screen model costing £1,199.
Subscription products, such as the video streaming service, experienced a price increase to $10 per month (equivalent to £8.99 in the United Kingdom).
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Sales and earnings exceeded Wall Street projections due to Apple’s phone and service revenue.
Although substantial declines in Mac and iPad sales were mitigated by an additional $1 billion in services revenue (from the App Store, iCloud, advertising, and payment services), overall revenues fell for the fourth consecutive three-month period.
Global Economic Factors Impact Revenue
The company’s total revenue exceeded $89.5 billion, reflecting a 1% decline compared to the corresponding period last year. The decline in consumer demand can be attributed to the combined effects of inflation, elevated borrowing costs, and diminished purchasing power of customers.
Foreign exchange rate fluctuations, however, were responsible for the 2% decline in revenue.
Tim Cook, CEO of Apple, said the iPhone 15 and Pro Max are limited due to supply chain concerns.
In China, where iPhones are manufactured, COVID lockdowns halted production last year.
Apple, just before the commencement of the corresponding quarter, achieved the historic milestone of being valued at $3trn (£2.4trn).
Apple reported about $25 billion (£20.4 billion) in shareholder dividends, which was good for investors.
