Apple records incredible zero growth. Is the apple in trouble?

The iPhone was a smash hit, but even iPhone sales growth failed to save the Apple to register zero growth. And that’s not a good sign.

In this article you will find:

Is the apple in trouble?

Don’t get me wrong, the iPhone is selling very well. Sales went well overall in the last quarter and even managed to break records in some markets. But that’s not enough to hide the fact that Apple is starting to run out of steam.

For one, iPhone sales are slowing. They’ve grown more or less steadily over the past few years, but in this last quarter, volume hasn’t equaled more profits. That’s not bad at all, but it’s a far cry from the explosive growth rates that Apple was enjoying.

What’s up with Apple?

American tech giant Apple has a very positive public face in the market. However, most of Apple’s success comes from its smartphone business. The iPhone generally sells so well that the industry hardly recognizes the flaws in Apple’s other businesses. According to reports, in the past quarter, iPhone sales performance is strong. Yet behind this glorious performance, Apple is starting to have some unusual worries. Apple released a surprise quarterly report last week, instilling confidence in the market, especially given the supply chain challenges it faces, the economic slowdown and the lingering fallout from the pandemic.

Apple’s third-quarter revenue of $83 billion was in line with Wall Street expectations. iPhone sales were particularly strong, with revenue of $40.7 billion for the quarter, beating many analysts’ expectations. The company also said it expects supply chain hurdles to impact up to $8 billion in revenue, but that now appears to be an exaggeration. However, the good New end here.

MAC, iPad and wearables see a sharp drop in revenue

Apple’s other three main products – the Mac, iPad and apparel – all saw year-over-year revenue declines. While the iPad exceeded analysts’ expectations, the Mac and usage stories fell far short of expectations. analysis claims earlier that the decline of the Mac was to be expected. The real surprise was that analysts did not predict such a drop.

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The MacBook Air and MacBook Pro are two of Apple’s most popular Macs. Sales of both devices may have been flat for nearly four weeks in the quarter. Indeed, the M2 versions of the MacBook Air and MacBook Pro were released on June 6, but didn’t go on sale until a few weeks later. The MacBook Pro was only sold on June 26, while the MacBook Air was only released on July 15.

The delay in the launch of the two Macs means that sales of Apple’s best-selling laptop have come to a halt. The result: Mac sales in the fiscal third quarter were down nearly $1 billion from a year earlier. This is the price to pay for this delay in arrival on the shelves.

iPhone sales are good, but Mac sales aren’t that impressive

Mac sales are expected to pick up next month, and some analysts remain optimistic about the category. Last quarter’s issues may only be temporary, and the Mac is unlikely to enter a downtrend.

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MacBook Pro and MacBook Air are expected to grow significantly in the fourth fiscal quarter, Apple will provide further growth impetus with the launch of a new high-end Mac mini and MacBook Pro. quality at the end of this year. A new 15-inch Mac Pro, iMac and MacBook Air will also be released next year.

Compared to the Mac, the real concern is the iPad. Reportedly, many consumers have been unable to find the iPad they want in retail stores over the past year. Industry experts believe that Apple’s iPad Air and iPad Pro look too similar, confusing many consumers. The iPad Pro’s shortcomings in multitasking are also a negative aspect to point out.

In its quarterly report, the Apple blamed falling iPad Pro sales for the category’s decline. Over a longer period (the past nine months), the company blamed lower sales of the 10-inch iPad and iPad Air on sluggish growth. However, the company does not seem to have any demand issues, with shortage of supply being the main reason.

Apple wearables are losing popularity

More worrying is Apple’s apparel and accessories business, which includes the Apple Watch, AirPods, Beats headphones, HomePod and Apple TV. While Apple’s other categories have also been hit by supply chain issues, the Russian-Ukrainian conflict and chip shortages, company CEO Tim Cook was careful to point out the impact. economy of consumer goods.

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He described the impact of “various headwinds” on the sector, including “macroeconomic shocks”. In other words, people are spending less on these products because they are concerned about the economy. However, Tim Cook said that was not the case with sales of iPhones and other devices.

Cook points out that the AirTag, which was launched around this time last year, could be one of the reasons for the drop in annual data. They also updated Apple TV in the third fiscal quarter of 2021. But that might not be enough to explain the division’s $750 million annual revenue drop. More signs have emerged recently amid reports that Apple plans to slow hiring and spending plans in certain categories.

Cook said in an interview with Bloomberg Television that as long as the company continues to hire and invest in the recession, it will be more “considerate” going forward. Maybe it’s just PR rhetoric that really means, “Yeah, we’re going to slow spending because we don’t know where the economy is going in the next few months.”

Apple employee growth is abysmal

According to reports, Apple has already crashed internally. Staff growth will be compressed as much as possible, and sometimes zero growth. In addition, operating expenses (reported under “R&D” and “General”) will also increase near zero after adjusting for inflation.

This contrasts sharply with previous years.

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Since at least 2009, Apple has added between 5,000 and 12,000 employees per year. Its operating expenses are also growing rapidly, at least $4 billion a year for the past five years. While Apple is still investing in key areas like augmented reality and artificial intelligence, it’s unlikely to cut jobs as massively as other tech giants. However, the reality is clear, Apple is experiencing a slowdown in growth.

What does this all mean for Apple? No one knows for sure yet, but it certainly doesn’t look good. The business may face a long period of stagnation or even decline. We’ll just have to wait and see.

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