Apple Sales Experience Record Decline, Fall By $90.8 Billion In Q1 2024

Apple CEO Tim Cook addressed concerns about the tech giant’s future following its announcement of the largest sales decline in over a year.

Sales fell by 4% year-on-year in the first quarter of 2024, amounting to $90.8 billion, primarily due to a significant decrease in iPhone demand.

Company executives attributed the sales decline to Covid-related supply disruptions, which had led to unusually strong sales during the same period the previous year. Despite the setback, they expressed confidence in future growth, citing upcoming product launches and investments in artificial intelligence (AI).

Cook emphasised his optimism about the company’s future, stating, “I couldn’t be more excited about the future we have ahead of us.”

To reinforce this confidence, Apple announced a historic $110 billion share buyback program.

The news of the share buyback program boosted demand for Apple stock in after-hours trading, although the company has experienced a more than 6% drop in stock price this year.

Apple’s recent struggles, including sales declines in five of the last six quarters, contrasted with the broader market trend of increasing smartphone shipments.

Quarterly iPhone sales at Apple declined by over 10% year-on-year, with sales dropping in every geographic region except Europe. Notably, the greater China market experienced an 8% decline, although Cook emphasised that iPhone sales were up in mainland China.

Despite competition from local rivals like Huawei and legal battles with regulators in the US and Europe over app store fees, Apple remains optimistic.

Chief Financial Officer Luca Maestri projected a rise in sales in the “low single digits” for the upcoming quarter, with double-digit growth expected in the services business.

Analysts, including Angelo Zino from CFRA Research, believe that the latest results could shift the narrative for Apple, particularly with better-than-expected performance in China and upcoming events that may boost investor sentiment.

Ozioma Samuel-Ugwuezi

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