{"id":1990209,"date":"2023-08-03T19:24:02","date_gmt":"2023-08-03T23:24:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/apple-sees-sales-slump-continuing-shares-drop-2-despite-beating-sales-expectations\/"},"modified":"2023-08-03T19:25:46","modified_gmt":"2023-08-03T23:25:46","slug":"apple-sees-sales-slump-continuing-shares-drop-2-despite-beating-sales-expectations","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/apple-sees-sales-slump-continuing-shares-drop-2-despite-beating-sales-expectations\/","title":{"rendered":"Apple&#8217;s sales slump persists, shares fall 2% despite surpassing sales expectations."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fapple-sees-sales-slump-continuing-shares-drop-2-despite-beating-sales-expectations%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1990209&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p><strong>Apple Forecasts Sales Slump, Shares Drop<\/strong><\/p>\n<p>By Stephen Nellis<\/p>\n<p>(Reuters) \u2013 Apple on\u2062 Thursday forecast that\u200d a\u200b sales \u200cslump \u200cwould \u200ccontinue into the \u2063current quarter,\u200c sending shares down despite beating\u2063 Wall Street sales and profit targets in the fiscal third quarter.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>Apple shares dropped about 2% after the \u2062company \u200cpredicted what could be the\u2064 fourth quarter\u2063 in a row of declining sales. \u200dFor the just-ended\u200b period, strength in services drove the \u2062profit beat, \u2063but \u2063weaker than expected sales\u2063 of Apple\u2019s most famous device, the iPhone, underwhelmed \u2063investors. Executives said iPhone\u200d sales would improve in the fourth quarter, but did not\u2062 say \u2064how\u2063 much.<\/p>\n<p>Apple is in a delicate position, with its \u2062entrenched \u2063iPhone \u2062battling for \u200cshare\u200d against Android rivals in a mature\u200d market, while its \u200dnext big product \u2013 the Vision Pro\u200d mixed-reality headset announced in June \u2013 \u2063is not yet in the hands of consumers.<\/p>\n<p>Apple said sales \u2062for \u2062the fiscal third quarter\u2062 ended July 1\u200d fell 1.4%\u200c to $81.8 billion and earnings per share rose 5% \u2063to \u2064$1.26. That topped analyst expectations of $81.69\u2064 billion\u200c and $1.19\u2062 per share, according \u2062to IBES data from \u2063Refinitiv. Weaker iPhone sales \u200cwere \u2063balanced by strong sales\u2063 in the services segment that\u2063 contains Apple TV+ and \u200dby\u2063 sales in China that grew 8% year over year.<\/p>\n<p>Apple\u2062 Chief Financial Officer Luca\u2063 Maestri said the \u2063company expects a year-over-year revenue performance in the company\u2019s\u200b fiscal fourth quarter \u200bending in\u200b September similar to\u2064 the drop \u2063the company reported on Thursday. That sales forecast is below analyst expectations of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/apple-sees-sales-slump-continuing-shares-drop-2-despite-beating-sales-expectations\/\" title=\"Apple's sales slump persists, shares fall 2% despite surpassing sales expectations.\">roughly \u2063flat fiscal fourth-quarter \u2063sales<\/a> of $90.19 billion, according \u2062to Refinitiv data.<\/p>\n<p>\u201cThere is a real concern about when volume\u2062 picks up and what the \u2063horizon is for iPhone sales growth,\u201d said Daniel Newman, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chip-companies-top-us-officials-discuss-china-policy\/\" title=\"Chip companies and US officials discuss China policy.\">chief\u2062 executive<\/a> and principal analyst\u200c at research firm Futurum Group.<\/p>\n<p>Apple pegged the gross profit margin in the September \u2064quarter at 44% \u2062to 45%, above analyst \u200bexpectations \u2062of 43.4%, according to Refinitiv data. While Apple\u200c expects\u2063 growth in its service\u200c segment that\u200c contains Apple TV+, iPad and Mac sales will fall by\u200c \u201cdouble digits,\u201d\u200b Maestri said on the call.<\/p>\n<p>Apple\u2019s research and development spending also hit\u2063 $22.61 billion \u200dfor the fiscal year so far, \u200dabout $3.12 billion higher than at \u200bthis point in \u2062the previous year.<\/p>\n<p>Apple \u2062Chief Executive Officer Tim Cook told Reuters in an interview that\u2062 the increased R&#038;D spending was in part driven by work on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/caterpillar-profit-rises-on-construction-equipment-demand\/\" title=\"Caterpillar's profit soars due to high demand for construction equipment.\">generative \u200cartificial intelligence<\/a>, \u2063the same field that\u200b is \u2064driving spending at other <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sen-blackburn-democrats-amnesty-invites-endless-cheap-labor\/\" title=\"Sen. Blackburn: Democrats' Amnesty Invites Endless Cheap Labor\">big technology companies<\/a>.<\/p>\n<p>\u201cWe\u2019ve been doing research\u2063 across a\u2063 wide range\u2064 of\u2063 AI technologies, including generative AI, for years. We\u2019re going to continue investing and innovating and responsibly \u2062advancing our products with these technologies to help enrich people\u2019s \u200clives,\u201d  Cook said.\u200b \u201cObviously, we\u2019re investing a lot, and it is showing up in the R&#038;D spending that \u2064you\u2019re looking at.\u201d<\/p>\n<p><strong>China\u2063 Strength<\/strong><\/p>\n<p>In the meantime, Apple appeared to outperform\u2062 what has been the weakest smartphone\u2064 market in China in almost \u2063a decade. Overall smartphone sales declined 8%\u2062 in China in the calendar second quarter to \u2064their lowest levels since\u2063 2014, according to Counterpoint Research. By\u2062 contrast, Cook told Reuters \u200bthat Apple\u2019s iPhone sales \u2063in China grew by \u201cdouble digits\u201d and that sales\u200b were also \u2063high in other \u200bsegments in China.<\/p>\n<p>That helped Apple \u2063push sales\u2063 in its greater China\u200d region to $15.76 billion, from $14.60\u200c billion in last year\u2019s same \u2062quarter.<\/p>\n<p>\u201cThis was really done \u2062by\u2064 attracting a quarterly record \u2062of switchers to the iPhone, as well as having a strong upgrader activity,\u201d Cook said. \u201cWe also\u2063 set quarterly \u2064records in China for both wearables, \u2062home and\u2064 accessories, and\u2062 services.\u201d<\/p>\n<p>Apple\u2062 said iPhone sales \u200cwere $39.67 billion, below analyst expectations of $39.91 billion, according to Refinitiv \u200ddata. Cook said the installed base of iPhones hit a new \u200bhigh but gave \u200cno numbers.<\/p>\n<p>\u201cThe \u2063company continues to face\u2062 headwinds caused by waning\u2063 growth in the smartphone\u2064 market,\u201d said Insider Intelligence analyst Jeremy Goldman. \u201cAll eyes\u2064 are now on its earnings call for any\u2064 potential Vision \u2063Pro or AI-related announcements that could further \u200cpush the boundaries \u200dof their business model.\u201d<\/p>\n<p>Apple\u2019s services segment, which includes its\u2064 Apple \u2064TV+ service which \u2064has\u200c announced a deal to carry Major League Soccer, had $21.21 billion in revenue, compared with analyst estimates of $20.76 billion, according to Refinitiv data. <\/p>\n<p>Cook said Apple\u2063 now has\u2062 1 billion subscribers \u200bon its \u200dplatform, which\u200c includes\u200b both \u2064Apple\u200b services and third-party apps, up from 975\u2062 million a quarter ago.<\/p>\n<p>The company\u2019s\u200c wearables business, which includes the Apple Watch and\u200b AirPods,\u2064 had \u2063revenue \u200bof $8.28 billion, compared with analyst estimates of \u2062$8.39 billion, according to Refinitiv data.<\/p>\n<p>Mac and \u200ciPad sales were $6.84 billion and $5.79 billion, respectively,\u2063 compared with analyst estimates of $6.62 billion and $6.41 billion, according to Refinitiv data.<\/p>\n<p>\u201cAlmost\u200b half of\u200b the\u200b Mac buyers during the quarter \u200dwere new to the product, \u2062and we continue to see \u200dstrong\u2064 upgrader\u200c activity to Apple Silicon,\u201d Cook told Reuters.<\/p>\n<\/p>\n<p>  (Reporting\u200c by Stephen Nellis in\u2063 San Francisco and Yuvraj Malik in  Bengaluru; Editing by Peter Henderson and Matthew Lewis)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/apple-sees-sales-slump\/attachment\/apple-inc-reports-fourth-quarter-earnings-in-washington\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>45th President Donald \u200dTrump Pleads Not Guilty to Felony Charges<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Devon\u200c Archer Reflects on Business Partnership with Hunter Biden<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>House\u200b Oversight Committee Releases Transcript of Biden&#8217;s Ex-Business Partner&#8217;s Testimony<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Judge Tanya Chutkan Assigned to Trump&#8217;s \u20622020 \u2064Election Challenge Case<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Apple&#8217;s High-Yield Savings Account Surpasses $10\u200c Billion in \u2064Customer Deposits<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Cognizant Technology Solutions Forecasts Strong Third-Quarter Revenue<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Equinix Predicts Slower Third-Quarter Revenue \u200cGrowth<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Worldcoin Expands Operations to \u200dAttract\u200b More Users Globally<\/strong><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Apple predicts sales slump to persist in current quarter, causing shares to drop 2% despite surpassing Wall Street&#8217;s sales and profit expectations in Q3. This could mark the fourth consecutive quarter of decline for the tech giant.<\/p>\n","protected":false},"author":66,"featured_media":1990210,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-1990209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1990209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1990209"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1990209\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1990210"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1990209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1990209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1990209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}