FX.co ★ Apple issues mixed financial report

Apple, a legendary corporation, is experiencing tough times. Although the company has not yet reported a real crisis, the latest financial report came as an alarming sign. Sales have been manifesting the longest drop in the last 20 years. What is more, Apple’s revenue contracted by 1%, whereas sales of its main products declined by 2–20%.

Apple’s financial results for the third quarter of 2023 were a kind of revelation and made everyone think about the real state of affairs in the company. The fact is that Apple’s revenue fell by 1% to $81.797 billion, while sales of the main products decreased by an average of 2-20%. In particular, in the third quarter, the company made $39.7 billion from iPhone sales, down 2.4% from a year earlier. What is more, Mac sales declined by 7%, while iPad sales showed the most significant decrease of 20%. The market immediately reacted to the financial figures, thus spurring a 3.2% slump in Apple’s share price. The key problem is that it is not just a single case. The company’s sales have been falling for three quarters in a row. If the trend remains the same in the fourth quarter, Apple will report the longest decline in the last 20 years. Curiously, Luca Maestri, Apple’s chief financial officer, is sure that the decrease will continue in the following quarter of fiscal year 2023.

However, it is too early to remove the giant from the list of best performers. Since the beginning of the year, shares of the tech company have jumped by 47%. However, a further decline in sales and the US dollar's appreciation may cause additional expenses. The fact is that Apple gets the better part of its income from foreign markets.