Major Reasons APPLE Records Drop In Overall Sales Of iPhone 14 Pro Max

Afimag.com –

Citing strong currency headwinds, constrained supply of the iPhone 14 Pro and iPhone 14 Pro Max and the challenging macroeconomic environment, Apple reported weaker-than-expected results for the holiday quarter. Lackluster iPhone and Mac sales contributed to a 5.5 percent drop in overall sales, marking the first year-over-year decline since 2019.

With total sales of $117 billion, it was still Apple’s second largest quarter ever, but that won’t be enough to appease Wall Street, which has come to expect more of the same from Apple, meaning perpetual growth.

iPhone sales, still at the heart of Apple’s business, fell 8 percent to $65.8 billion in the important holiday quarter, as the latest flagship models, the iPhone 14 Pro and 14 Pro Max, were supply-constrained through most of December. Mac sales dropped by almost 30 percent to $7.7 billion, as the strong dollar, difficult macroeconomic conditions and the launch of the hugely popular M1 MacBook Pro in the comparison quarter all contributed to that steep drop.

Meanwhile Apple’s services business continued to grow, albeit at a slower pace than before. Services sales surpassed $20 billion for the first time, however, after almost doubling over the past four years.

“I’m proud of the way we have navigated circumstances, seen and unforeseen, over the past several years, and I remain incredibly confident in our team and our mission and in the work we do every day,” Apple CEO Tim Cook said in a conference call with investors.

“We know that Apple is not immune,” he said with respect to macroeconomic challenges such as inflation, the war in Ukraine and the lasting impact of the pandemic.

“We adapt quickly to circumstances outside our control while delivering with excellence in the things we can,” he added. The fact that Apple’s revenue never dropped during the Covid pandemic speaks volumes to that ability.

As the following chart shows, the iPhone accounted for 56 percent of Apple’s revenue last quarter, with the company’s services the second largest contributor to overall sales by a significant margin.