Apple’s latest earnings show the Mac is slumping and services are rising

Apple beat Wall Street expectations, saying it had reached an all-time high in services revenue and set a new quarterly record for iPhone revenue in March. a report on its second-quarter results on Thursday. The numbers show continued demand for the iPhone 14 range even as substantial upgrades (including USB-C connectivity) approach this fall. But Apple’s other divisions, including Mac and iPad, declined year over year.

“We are pleased to report a record services and quarterly iPhone in March despite the challenging macroeconomic environment, and that our installed base of active devices reached an all-time high,” CEO Tim Cook said in the statement. communication from the company. release revenue. He told CNBC in an interview that, unlike other tech heavyweights that have laid off tens of thousands of workers in recent months, Apple isn’t considering wide-ranging cuts. “I see that as a last resort and mass layoffs so not something we’re talking about right now,” Cook said.

PC sales have taken a slump in recent months, with IDC and Canalys both reporting that global shipments are down about 30 percent in the first quarter of 2023. Of all the major brands, Apple was the hardest hit as consumers continue to cut back on gadget spending following a pandemic boom.

“There are actually two reasons for that,” Cook told CNBC when talking about Mac revenue. “One is the macro situation in general. And the other one is where we still compare to the very difficult comparison of the M1 MacBook Pro 14 and 16-inch from the quarter last year. Those MacBooks came with all-new designs, while the M2-based revisions were just a spec.

The company is rumored to introduce a 15-inch MacBook Air and other machines in the coming weeks, which could give Mac sales a much-needed boost. iPad sales were down 13 percent compared to the same quarter a year ago, and Apple’s wearables category was down 1 percent.

Apple kicks off its annual developer conference in early June and is expected to showcase the latest major releases of iOS, iPadOS, macOS, wearOS, and tvOS. But more importantly, the WWDC keynote marks the debut of Apple’s highly anticipated mixed reality headset. As the first new major hardware category for Apple since the Apple Watch, the high-tech headset is rumored to feature advanced eye and hand tracking, support for many existing apps, and retail for over $3,000.