Tech giant Apple reported a decline in sales and in particular its sales to China following a series of regulations, bans, and business deals.
This is the fourth consecutive quarter that Apple has had to report year-over-year decline in total revenue, representing the longest downturn since 2001.
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Apple’s sales in China, its third largest market, shrank 2.5 percent in the third-quarter, despite the fact that Apple surpassed its global sales expectations. It failed, however, to even meet its China expectations, with a revenue of $15.1 billion as opposed to a predicted $17 billion.
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Apple is up against competitor Huawei and numerous regulations both China and the U.S. have put on trade and technology. Huawei smartphone sales grew by 37 percent in quarter three compared to the previous year while Apple iPhone sales shrank by 10 percent.
According to Brian Mulberry, a client portfolio manager at Apple shareholder Zacks Investment Management, Huawei will “be a strong headwind” for the tech company. He added that a 16 percent growth in Apple’s services unit was alternatively a source of optimism.
But according to Tim Cook, the decline is due to Mac and iPad sales as well as currency fluctuations. Cook also said the company is investing “quite a bit” in generative AI. “You will see product advancements over time,” Cook said, “where those technologies are the heart of them.”
In response to the earnings report, Apple’s stock dropped a percent.
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