The mood is generally positive regarding Apple Inc.’s (NASDAQ:AAPL) iPhone 15 release. However, the tech giant isn’t without its challenges.
The Scoop: Even with the buzz around the latest iPhone, there’s been a noticeable dip in Apple’s earnings for the past three consecutive quarters. A recent report indicated a 1.4% decline in revenue for the quarter concluding on July 1.
Apple typically counts on its iPhone sales for nearly half its total profit, but this quarter saw a 2.4% slump. Further complicating matters is China’s directive for its employees to refrain from using iPhones.
This poses a concern since roughly 19% of Apple’s sales originate from Greater China, encompassing mainland China and Hong Kong.
Bloomberg analysts, Anurag Rana and Andrew Girard, have also expressed reservations about China’s prohibition of iPhones within its government institutions. They opine that such unpredictable measures could hamper iPhone sales momentum into the next year.
On the brighter side, Apple witnessed an 8% growth in revenues from services like Apple Pay and Apple Music compared to the previous year.
Emerging markets are showing promise for Apple’s iPhones. In India, sales figures have reportedly peaked, as per The Street.
While Apple’s current valuation stands at a whopping $2.75 trillion, some market experts suggest the stock might be overpriced. They advocate for a more consistent growth trajectory for Apple in the ensuing years.
On the horizon, Apple is gearing up for the launch of the Vision Pro virtual reality goggles, but fans will have to wait until 2024. Most analysts opine that this won’t be an overnight sensation. The consensus seems to be that Apple requires an innovative game-changer to bolster its stock value.