Apple posts another quarterly dip as Mac sales drag

Apple on Thursday posted its fourth consecutive quarterly decline with revenue of $89.5 billion in its fiscal 2023 fourth quarter, down 1 percent over the same quarter last year. Mac sales were once again hammered, down about 35 percent year and year. iPhone sales, which were up slightly, and Services, which gained about 16 percent, were the lone bright spots.

Apple was widely expected to post a year-over-year decline in the quarter. The company continues to struggle in a difficult economy for higher-priced goods and feel pressure from Huawei in China. Apple’s Greater China sales were flat year-over-year. Apple is heading into the holiday shopping season with an armful of new products, including the iPhone 15, Apple Watch Series 9, and M3 MacBook Pro, but will face lots of uncertainty.

Here’s how Apple’s product category sales looked in the quarter ending September 30:

• iPhone: $43.8 billion (Up 3 percent)
• Mac: $7.6 billion (Down 34 percent)
• iPad: $6.4 billion (Down 10 percent)
• Wearables: $9.3 billion (Down 3 percent)
• Services: $22.3 billion (Up 16 percent)

The iPhone figures were boltstered by about two weeks of iPhone 15 sales, which is typical for this quarter. Apple’s newest MacBook Pros and iMacs with the M3 chip don’t go on sale until next week and will factor into Apple holiday quarter (Q1 2024).

Tim Cook noted that the quarter represented a record for iPhone sales in the September quarter. In an earnings call, he noted that half of Mac and iPad buyers were new to the product, while two-thirds of Apple Watch buyers had never owned an Apple Watch before. Looking ahead, CFO Luca Maestri said he expects Apple’s revenue to be “similar” to last year, with growth to return to the iPhone and Mac, and a “significant” decline and iPad and wearables likely.