- iPad helps Apple get through the iPhone decline
Last Quarter, Apple Made a Bit Less Money with Its iPhones - But iPads More Than Made Up for It
In the last quarter, Apple made a bit less money with its iPhones - but the iPad tablets more than made up for it. The company's revenue increased by five percent year-over-year to $85.5 billion. Net income was $21.45 billion ($19.9 billion euros), up around eight percent from the previous year.
iPhone revenue decreased by one percent to around $39.3 billion, but Apple still beat analyst expectations.
iPad Boost with New Models
The star of the quarter in Apple's product lineup was the iPad, thanks to the launch of a new powerful Pro model and a refresh of the iPad Air. iPad revenue surged by nearly a quarter year-over-year to $7.16 billion, surpassing analyst expectations by half a billion dollars.
Mac computers were also a bright spot, with a 2.4 percent increase in revenue to over $7 billion. Apple noted that there's still a large market to tap into, with more than half of iPad and Mac buyers purchasing these devices for the first time.
AI Features as a Selling Point
Starting this fall, Apple plans to bring new AI-based features to its devices. Some of these AI innovations have high hardware requirements and will likely run on new iPhone models, but at least an iPhone 13 Pro from last year will be needed. Apple CEO Tim Cook said in a call with analysts that this could give customers a reason to buy new iPhones.
Rival Huawei Re-asserts Itself in China
Apple had been losing ground in the large smartphone market in China. According to calculations by the IDC analysis firm, Apple fell out of the top 5 smartphone vendors in China. Chinese provider Vivo and re-asserted Huawei are neck and neck at the top with around 18 percent market share each. Apple's revenue in the China region decreased by more than six percent to $14.73 billion.
Cook, however, expressed long-term optimism about the market, noting that iPhones were the most popular smartphone models in cities recently.
Despite the decrease in iPhone revenue, other Apple products, particularly the iPad, significantly contributed to the company's revenue growth. The iPad boosted its revenue by nearly a quarter due to the launch of a new Pro model and a refreshed iPad Air, surpassing expectations by half a billion dollars.
Additionally, AI-based features will be introduced to Apple devices starting this fall, potentially enticing customers to upgrade to newer iPhone models, as announced by Apple CEO Tim Cook.
