However, the top iPhone maker also recorded slow growth. At the same time, the firm’s stocks increased by over 3% when it came down to its extended trading.
The tech giant failed to delineate any form of formal guidance in regards to the stats achieved in the report for this third quarter, which is quite unlikely of the company when you look at its past history.
Top analysts were waiting for the organization to provide them with a small overview of what to expect in the upcoming fourth quarter.
Meanwhile, the company’s CEO was recently seen speaking to media about how the firm expects to witness its revenue expand further by September, despite witnessing some lacking in growth.
During the third quarter, Apple saw its revenue increase by 2%, which is a bummer when you compare it to stats from the previous year. During that time, we saw revenue increase by a whopping 36% and therefore the difference is mighty.
Nevertheless, Cook is happy with the progress, adding how he felt the achievements were much better than the firm had anticipated, considering the huge challenges that it faced in terms of the unpredictable economic environment.
Computer vendors and those involved in the world of chip manufacturing mentioned to all that the demand for phones was at an all-time low, the same being the case for computers too.
Consumers are fearing the word recession and inflation and that is what makes them not want to invest heavily in such gadgets at the moment.
While the growth for Apple comes under the category of being soft, it is a clear indicator of how the industry of tech and electronics would be seeing little to no growth. And while the firm was forced to deal with inflation, it would carry on with its investments.
Price hikes in shipping, raw materials, and more have definitely had an impact on the firm but Cook says they’re still moving forward and will continue to hire. But again, it’s slower than usual.
But Apple did manage to get huge success when it came down to attracting different customers with its iPhones where sales were predicted to be low by Wall Street but still managed to stay strong.
New phones are usually released in the month of September and that’s why we see sales decline. But in this case, they still pulled through.
Tim Cook did add a special note about how Android customers were more attracted to iPhones during this period too. But other gadgets like iPads, watches, HomePods, AirPods, and more declined by nearly 8%.
The firm’s gross margin also went above and beyond expectations but the slow growth wasn’t a pleasurable sight to see for many investors.
Remember, this growth rate is the lowest that the firm has witnessed since the year 2015. And if things continue to occur at this pace, well, investors are going to be left with no choice but to glance over Apple’s valuation with more focus.
The clear lacking in its services business was the biggest fault that had many people talking, while other areas did better than planned. And according to current stats, Apple’s fourth quarter doesn’t seem to be any better.
Remember, investors adore Apple’s dive into the services industry because its products really attract the masses. But with growth at a slumping 12%, the firm still managed to achieve expansion.
Cook tried to reassure investors that it was all temporary and was the result of economic uncertainty that affected markets worldwide. But we feel investors may not be buying that justification in its entirety.
