Apple beat Wall Street expectations and said it reached an all-time high for services revenue and set a new March quarter record for iPhone revenue in a second-quarter earnings report on Thursday. The numbers show continued demand for the iPhone 14 lineup even as big upgrades (including USB-C connectivity) approach this fall. But other Apple divisions, including the Mac and iPad, have fallen off year after year.
“We are thrilled to report an all-time record in services and a quarterly record for iPhone despite a challenging macro environment, and that our installed base of active devices is at an all-time high,” said CEO Tim Cook of the company. earnings release. He told CNBC in an interview that unlike other large tech companies that have laid off tens of thousands of employees in recent months, Apple is not considering large-scale cuts. “I think this is a last resort, and therefore, mass layoffs is not something we’re talking about at this moment,” Cook said.
PC sales have been declining sharply in recent months, with IDC and Canalys both reporting worldwide shipments falling about 30 percent in the first quarter of 2023. Of all the major brands, Apple has been hit the hardest as it continues to Consumers to reduce hardware spending. After the epidemic boom.
“There are really two reasons for that,” Cook told CNBC when discussing Mac revenue. “One is the overall situation overall. The other is where we’re still juxtaposing the very tough comparison between the M1 MacBook Pro 14 and 16-inch from last year’s quarter.” The MacBooks came out with completely new designs, while the M2-based revisions were just a spec bump.
It’s rumored that the company will introduce the 15-inch MacBook Air and other devices in the coming weeks, which could give Mac sales some much-needed impetus. iPad revenue was down 13% year-over-year, and Apple’s wearables category was down 1%.
Apple will begin its annual developer conference in early June and is expected to showcase the latest major versions of iOS, iPadOS, macOS, wearOS and tvOS. But more importantly, the WWDC keynote will mark the debut of Apple’s long-awaited mixed reality headset. As Apple’s first new major hardware category since the Apple Watch, rumor has it that the high-tech headset will feature advanced eye and hand tracking, offer support for several existing apps, and could retail for more than $3,000.