Apple iPhone sales have declined majorly in the three months since December. The sales fell 5% compared with the same period in 2021.
The reason for this is a slowdown in the technology sector during COVID-19. The industry has been affected a lot as the production and manufacturing of mobile phones are in China. Due to COVID-19, there was a shortage of supplies, which further contributed to the decline in apple product sales.
The biggest fall since 2019
It is considered the biggest fall since 2019 and has affected the company more badly than expected.
Tim Cook, Apple’s CEO, explains that the firm was facing a challenging environment. The Russia-Ukraine war, the devastating effects of the pandemic, and the fall in the supply of products because of the coronavirus have affected the industry. A strong dollar as well as rising prices leading to an economic slowdown are the other main reasons behind the decline.
He further added on a conference call with investors that the world continues to face bizarre conditions, and Apple is not immune to them. The fall in sales is seen throughout the world. The sales have declined throughout the world, and other Apple products have also been badly hit. People can’t afford the high prices.
Reasons for the Drop in Sales
Research confirms that the sales of plausible iPhones fell by more than 8% and those of Mac computers by 29%. The company’s profits have also decreased by 13% to ₹3000 crores.
An analyst at PP Foresight, Paolo Pescatore, stated that like any other electronic firm, Apple is also struggling to make customers or users understand why one should upgrade when there is only a gradual and small improvement from the previous models.
Catalyst market analysis shows a 12% decrease in the number of smartphones shipped globally last year.
Apple executives stated that they expected business to grow through Apple Pay and Apple News. Giving more information, they said that the number of active Apple devices worldwide is more than 200 crore.
Many other large tech industries are facing issues and pressures because of the lower sales of their products. Apple is a brand that is quite popular all over the world, and people used their products way more before COVID-19, and the immediate decline has had lingering effects. The high prices can be a major concern.
Previous Losses
The company has experienced decreases and major losses in sales in the past, but it has consistently been one of the world’s most valuable companies. In 2016, for example, it reported its first quarterly revenue decline in 13 years. This was due to a slowdown in iPhone sales, which make up the majority of the company’s revenue. However, Apple has since rebounded and continues to perform well.
While there have been some quarters where the company has experienced a decline in sales or missed its financial targets, it has also seen many quarters of strong growth and achieved record-breaking financial results. That was till 2019.
In 2019, Apple faced a decrease in sales and a major loss in revenue. This was again largely due to a slowdown in iPhone sales, which make up a significant portion of the company’s revenue. The company also faced a challenging economic environment, including trade tensions and a slowdown in the global economy.
Other major Company sales
Amazon has also seen a fall in product sales in online stores of 2% in the last three months of 2022 compared to the year 2021.
The sales at Amazon rose 9% to approx. 15,000 crore in the three-month period, boosted by stronger growth in their cloud computing business.
Brian Olsavsky, the chief financial officer, already warned the investors that there would be a decline and that profits would be reduced in the coming months.
