// Apple posts better-than-anticipated second-quarter earnings as consumers continue purchasing iPhones
// The tech giant recorded a 3% decline in revenue in the three months to April 1
Apple posts a dip in sales in the second quarter as consumers hold off on large purchases of computers and iPads as rising prices hit wallets.
The tech giant‘s revenue slipped 3% in the first three months of the year compared with the same period in 2022 to £75.4bn – marking a second quarter in a row of sales declines for the business.
However, the fall was smaller than the prediction of £73.6bn as demand for iPhones increased 1.5% year on year, hitting £40.6bn, helped by strong demand across South Asia and Latin America.
Sales rose more than 2% in Europe, but America, which is Apple’s biggest market saw sales fall more than 7%.
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Apple chief executive Tim Cook highlighted its growth in India, where its investing heavily.
Sales grew by double digits in the country, where the group recently opened its first two official stores.
“Overall I couldn’t be more delighted and excited by the enthusiasm I’m seeing for the brand there,” he said on an analyst call.
Apple’s services unit, which includes Apple Music, Apple News and Apple Pay, saw a record sales increase of 5% year on year that topped over 15.8bn.
Cook said: “We are pleased to report an all-time record in services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high.
“We continue to invest for the long term and lead with our values, including making major progress toward building carbon-neutral products and supply chains by 2030.”
Chief financial officer Luca Maestri added: “Our year-over-year business performance improved compared to the December quarter and we generated strong operating cash flow of $28.6bn while returning over $23bn to shareholders during the quarter.”
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