LOS ANGELES – Apple, heading into its most critical sales period of the year, sparked fresh concerns about revenue growth and lingering weakness in an intensely competitive China market.
Following the company’s quarterly earnings report, Apple said that total sales in the December period will rise by a percentage in the low-to-middle single digits. Analysts had been projecting a 7 per cent increase. The company also posted a decline in China revenue last quarter, falling short of estimates.
The broader picture shows a company still trying to rebound from one of the longest sales slumps in its history. Revenue had declined four straight quarters in fiscal 2023 and only returned solidly in the past two quarters. Apple remains the most valuable company on Earth, but it’s had to contend with a sluggish smartphone market, more competition in China and regulatory scrutiny around the world.
The concerns weighed on shares in late trading on Oct 31, sending them down about 2 per cent. The stock had been up 17 per cent this year through Oct 31’s close, fueled by optimism about Apple’s artificial intelligence prospects.
Overall revenue edged past Wall Street projections last quarter – helped by global iPhone demand – but the results show that the company is still struggling in a key market. Apple is competing with local brands in China, which serves as its main manufacturing hub.
Revenue in the region fell slightly from a year earlier to US$15 billion (S$19.8 billion) in the fourth fiscal quarter, which ended Sept 28. Analysts had estimated US$15.8 billion.
The iPhone grew in every geographic market, chief executive officer Tim Cook said, signalling that the rest of the company’s product lineup may have been the issue in China, its biggest source of revenue after the Americas and Europe.
Total sales