Apple reports 10% drop in iPhone sales, but registers all-time revenue record in Services

Apple reported a disappointing 4 per cent drop in sales and slightly lower profits in the 2024 second quarter ended March 30. This marks a stagnant year for the tech giant, mirroring the performance of 2023. The company's main revenue earner, the iPhone, witnessed a 10 per cent fall in sales compared to the previous year, indicating weak iPhone sales for the June quarter. 

The company's services business, however, saw a rise of 14 percent compared to the same quarter last year. Apple's Vision Pro headset was also launched in this quarter, but CEO Tim Cook did not provide any insights.

“Today Apple is reporting revenue of $90.8 billion for the March quarter, including an all-time revenue record in Services,” said Tim Cook, Apple’s CEO.

He added, “During the quarter, we were thrilled to launch Apple Vision Pro and to show the world the potential that spatial computing unlocks. We’re also looking forward to an exciting product announcement next week and an incredible Worldwide Developers Conference next month. As always, we are focused on providing the very best products and services for our customers, and doing so while living up to the core values that drive us.”

Cook, during his interaction with analysts, highlighted the potential of generative artificial intelligence for Apple's businesses but refrained from providing specific details.

The upcoming WWDC conference in June will witness Apple revealing its strategy to incorporate generative AI software features into iOS, macOS, iPadOS, and other platforms. Apple is reportedly considering partnerships with Google and OpenAI.

The first batch of AI features is likely to operate on-device, which could enhance their speed while maintaining Apple's privacy standards.

Before this, Apple is anticipated to announce new iPad Pros with OLED displays for the first time, and revamped iPad Airs next Tuesday. The event will also showcase a range of new accessories for the long-awaited devices. 

Despite a slower quarter, Apple announced a new buyback of $110 billion and an increase in dividends. In the first half of the year, the company generated $58 billion in cash and returned $50.8 billion to shareholders through buybacks or dividends.