Apple revenues fell for a fourth quarter in a row despite strong demand for the company’s new iPhone.
The tech giant reported sales of £73.5bn for the three months to the end of September – down 1pc on the same period last year.
The slide came despite iPhone sales hitting £35.9bn in its fourth quarter, a record high for the period.
The tech giant reported sales of £73.5bn for the three months to the end of September – down 1pc on the same period last year
And its services business, which includes Apple Music and TV, saw revenue surpass £18bn for the first time.
But sales of its Mac, iPad and Wearables categories continued to let Apple down as it struggles to build on its pandemic boom.
Profits hit £18.8bn in the fourth quarter, up 11pc from the same period of last year.
For the full year, Apple reported total revenue of £314bn, down from £322bn in the prior year.
But the results crucially do not include the bulk of sales from Apple’s newest iPhone 15 model, which was released in September and is likely to bolster business in the crucial Christmas quarter.
‘Today Apple is pleased to report a September quarter revenue record for iPhone and an all-time revenue record in services,’ Apple chief executive Tim Cook said in a statement. ‘We now have our strongest line-up of products ever heading into the holiday season.’
The update was met with a mixed reaction from investors who are increasingly spooked by competition from Huawei in China, Apple’s third-largest market.
Revenue dipped around 2.5pc in China during the quarter and Cook said Apple’s new high-end handset models – the iPhone 15 Pro and Pro Max devices – are facing supply constraints.
Dan Ives, tech analyst at Wedbush, said: ‘Apple delivered solid results with services the shining star while iPhone revenues met expectations. China remains a bit soft for Apple but this dynamic appears to be under control.’
The results mark the end of the big tech earnings season, which saw the likes of Amazon continue to make huge profits.
The retail giant raked in profits of £8bn for the three months to the end of September, topping the £2.3bn it made in the same period of last year.
Amazon sales hit £118bn in the quarter as consumers continued to splash out on Prime Day deals, especially in the US.
This was up by 13pc compared to last year and roughly £2bn ahead of Wall Street estimates.
Fellow tech behemoths Alphabet and Microsoft also posted a combined £35bn in profits last month as they cash in on artificial intelligence.
Dipanjan Chaterjee, analyst at Forrester VP, said the rapid growth in services at Apple ‘offset declines from the Mac and iPad lines of business’.
Chatterjee added: ‘This is a good thing because services create stickiness and recurring revenue and have much higher margins than products.’
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