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Apple may be the world's - at least in terms of market capitalization - but the company cannot long escape the downturn the industry is experiencing due to declining demand for smartphones, computers and tablets.

In related news: The Cupertino-based company presented its quarterly results for the period from April to June.

  • For the third time in a row, the American company recorded a revenue decline of about 1.4 percent.
  • However, Apple announced results that were slightly better than analysts' disappointing expectations.
  • But declining demand for the iPhone, the company's flagship product, somewhat shook investors, causing the company's stock to fall 3.2 percent during late trading.
  • If the stock's decline continues, Apple could lose its record $3 trillion (3,000 billion) valuation.
    • Hints about generative artificial intelligence ultimately failed to reassure investors.
    • Normally Tim Cook is not loose on this, but he assured that Apple has been working on this technology for years.

The numbers

  • Revenue: $81.8 billion, up from an estimated $81.69 billion.
  • Earnings per share: $1.26, versus an estimated $1.19.
  • Gross margin : 44.5 percent, versus an expected 44.2 percent.
  • iPhone revenues: $39.67 billion, versus an expected $39.91 billion, down 2 percent.
  • Mac revenues : $6.84 billion, versus an estimated $6.62 billion, down 7 percent.
  • iPad revenues : $5.79 billion, versus an estimated $6.41 billion, down 20 percent.
  • Services revenue : $21.21 billion, versus an expected $20.76 billion, up 8 percent.

Many factors come into play

In announcing the results, company leaders cited several factors affecting the business.

  • The continued decline in demand for smartphones, computers and tablets for several months has driven down sales of Apple products, even iPhone sales.
    • This downward trend can easily be explained by the macroeconomic situation. Consumers have been facing high inflation for almost a year, and although it has recently eased, it has not yet had a direct impact on household finances. In addition, there is pressure from high interest rates.
    • It should also be noted that the second quarter is traditionally slow for Apple, especially for the iPhone, as customers prefer to wait for the announcement of new models before upgrading.
  • The strength of the dollar also affected the company's earnings. If the currency had remained stable on a year-over-year basis, sales would have increased, CEO Tim Cook and CFO Luca Maestri assured.

A hopeful future?

These mixed results are merely the result of headwinds facing Apple, . The most important thing is actually the U.S. company's outlook for the current quarter and coming months, according to a Morgan Stanley analyst. Unfortunately, Cupertino does not expect a quick recovery.

  • Apple predicts that iPhone sales will rebound, helped by a model that should mark a turning point, and that its services will continue to grow. But the company expects a double-digit decline in sales of Macs and iPads.
  • In other words, Apple is forecasting similar quarterly results for the current period to those of the previous quarter.

If this materializes, it will mark the longest run of sales declines for Apple in two decades, notes NOTES. (as,kg)

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