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Apple’s third-quarter revenue is expected to face unfavorable numbers due to the slow sales of iPhones from April to June. According to Refinitiv (via Reuters), the predicted decrease could hit 1.6% in total quarterly revenue, making it the biggest Q3 revenue drop for the company since 2016.
This will be a huge step backward for Apple after it obtained a 3% increase in iPhone sales in 2022 and a 1.5% growth when March ended this year. According to 24 analysts, Apple might have lost 2% in its Q3 2023 revenue.
The report noted that the major markets from the Americas and China could contribute to this fall, with the former expected to lead to a 6% revenue drop and the sales report in the latter to be flat.
The poor Q3 sales of iPhones in China follow Apple’s positive growth in the market during Q2. According to an earlier report, iPhones reached 6.1% YOY growth despite an overall smartphone shipment drop in the 2023 Q2 Chinese market. However, the report shows that the said number was comparatively less significant compared to Huawei, which had a whopping 71.6% growth in Q2 2023.
On a positive note, Piper Sandler analysts told Reuters that the poor sales in China “is likely to be easily offset by strong sales momentum in India.”
To recall, India recently entered Apple’s top 5 biggest iPhone markets during the year’s second quarter. Counterpoint Research data shows that India accounted for 4% of all iPhone sales of Apple in Q2 2023, translating to a 50% year-on-year growth. According to the research, Apple’s influence in the Indian market is growing. As the research firm noted, Apple garnered a total of 5.1% share in India’s overall smartphone market by the end of June.
In the end, analysts cited by Reuters believe that AI holds the power to aid the company in this challenging economic climate. As the report noted, Apple has been trying to avoid talking about AI in its events, but Analysts at Well Fargo think that a dedicated commentary related to this could help it get a stock boost.