Apple’s second quarter revenues slide despite strong iPhone sales

Apple’s revenues continue to decline, despite a smaller-than-expected drop in sales and a strong performance by the iPhone in its second quarter. The company announced that sales for its fiscal second quarter, which ended on April 1, fell 2.5% to $94.8 billion, beating expectations of a 4.4% drop to $93 billion. However, profit remained flat at $1.52 per share, compared to estimates of $1.43 per share.

Apple reported net income of $24.16 billion during the months of January, February, and March, down from $25 billion a year ago. Operating income was also down at $28.32 billion compared to $29.98 billion in the same period last year.

Despite these declines, iPhone sales were up 1.5% to $51.3 billion, offsetting the predicted 3.3% drop, thanks to emerging markets, particularly in Brazil, India, and Mexico.

“We are pleased to report an all-time record in Services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” said Tim Cook, Apple’s CEO.

Apple’s stock has outperformed most of Wall Street in 2023, up 28% year-to-date, according to Reuters. However, sales took a hit in China (3%) and the Americas (over 7%). Sales grew more than 2% in Europe.

Apple’s supply chain issues have reportedly been resolved, as the company had no material shortages across any of its products during the quarter.

Luca Maestri, Apple’s CFO, said, “Our year-over-year business performance improved compared to the December quarter, and we generated strong operating cash flow of $28.6 billion while returning over $23 billion to shareholders during the quarter. Given our confidence in Apple’s future and the value we see in our stock, our Board has authorized an additional $90 billion for share repurchases. We are also raising our quarterly dividend for the eleventh year in a row.”

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