Despite strong demand for its iPhones and services like Apple TV+, Apple’s sales have continued to decline.

The tech giant reported a 1% dip in revenues, reaching $89.5 billion for the three months ending on September 30, compared to the same period last year.

Sales of Mac computers and iPads struggled following a post-lockdown surge in interest. This marks the fourth consecutive quarter of year-on-year sales decline.

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However, Apple reported profits of $23 billion, with record iPhone sales contributing to its success. The company also achieved high revenue from services like iCloud and Apple Music, generating $22.3 billion, a 16% increase from the previous year.

Apple highlighted concerns about potential supply chain disruptions affecting deliveries of the new iPhone 15 Pro and Pro Max devices.

CEO Tim Cook stated that the company is working diligently to increase production and anticipates reaching a supply-demand balance later in the quarter.

Despite these challenges, Cook expressed confidence in Apple’s product lineup for the upcoming holiday season.

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The latest report indicated that other Apple products have struggled to gain traction with consumers recently, particularly Mac computers, which saw sales drop to $7.6 billion for the quarter compared to $11.6 billion the previous year.

In September, Apple announced its latest iPhone lineup, including the absence of the proprietary lightning charging port, which was replaced with a USB-C cable to comply with the universally accepted standard.

The company has also faced economic uncertainty and challenges in the Chinese market.

Apple revealed that sales in China declined by 2.5%, but after adjusting for foreign exchange rates, the business in China demonstrated year-on-year growth.

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CEO Tim Cook’s second visit to China this year emphasized the importance of this key market, despite ongoing challenges posed by Covid restrictions and US-China tensions.

In March, Cook referred to Apple’s relationship with China as “symbiotic,” given its significance as a manufacturing base.