Slowdown in iPhone Sales and Challenges in China
Apple is set to unveil its second-quarter results against a backdrop of slowing iPhone sales and challenges in China. Expectations are mixed as analysts’ figures are not encouraging.
Decline in iPhone Sales in China
According to estimates, iPhone sales are believed to have dropped by 19% during the quarter, while its competitor Huawei continues to eat into market share. This anticipated decline in iPhone shipments follows two consecutive quarters of revenue decline in China, a crucial region for Apple, representing about 20% of its global market share.
Mixed Performance in the Stock Market
On the stock market, the company has seen a decline of about 5% since the beginning of the year, while its Big Tech competitors such as Microsoft and Google have seen their stocks rise by 25% and 37% respectively over the same period.
Forecasts for the Coming Quarter
For the upcoming quarter, analysts are predicting earnings per share (EPS) of $1.50 on revenue of $90.3 billion, representing a 4.75% decrease from the previous year. iPhone revenue is expected to decrease by around 10.8%, accounting for 60% of revenue, while iPad and Mac sales are also expected to decline.
Positive Aspects to Consider
However, there are positive aspects to consider for Apple. Service revenues are expected to grow by 11%, while gross margin is expected to improve by 5%. Additionally, the company is gearing up for its annual Worldwide Developers Conference (WWDC) in June, where it is expected to unveil the latest versions of its operating systems, with a particular focus on generative AI integration.
Investments in AI
Despite an apparent lag in this area compared to its competitors, Apple is investing in AI by acquiring companies and developing its own language model. Collaborations with major players such as OpenAI and Google are also being considered to enhance its offerings in this field.
Opportunity in AI
Although AI applications on smartphones are still more technological showcases than revolutionary features, Apple has the opportunity to change the game. No significant revolution has yet emerged in this field, giving Apple the opportunity to become a pioneer in this rapidly growing sector.
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Marine Lansucki
Thank you for these infos !