Sales numbers from Apple’s Q4 2023 show a fourth consecutive quarter of year-over-year declines, with $89.5 billion in sales, a 1% decrease compared to the same period last year.

Despite the dip in sales, Apple‘s net income for the quarter rose nearly 11% to $22.96 billion, surpassing analyst expectations.

The decline in the product segment, down more than 5% YoY, was attributed to decreases in Mac and iPad sales.

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On the positive side, iPhone revenue increased by 3% to $43.8 billion, setting a new September quarter record.

Apple also reported a record number of installed devices actively in use across all products and geographic segments.

However, concerns linger about the performance of the iPhone 15, as it went on sale just eight days before the end of the September quarter.

The real impact is expected to be felt during the crucial holiday quarter.

While Apple CEO Tim Cook acknowledged the uncertain macroeconomic environment, he emphasized the company’s continuous investment in the future.

Services segment revenue, including Apple’s subscription products like Apple TV+, saw a growth of over 14% YoY, reaching an all-time quarterly record of more than $22 billion.

Apple’s performance in China raised eyebrows, with a 2.5% YoY dip in sales during Q4 2023.

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Analysts speculated that rising competition from local companies, including Huawei, might be impacting demand for high-end iPhones.

Cook, however, attributed the sales dip in China to a difficult foreign exchange rate and highlighted that iPhone sales set a September quarter record in mainland China.

Looking ahead, Apple expects total company revenue to be essentially flat in the December quarter, with the 2023 December quarter being a week shorter than the previous year.

Cook also teased the upcoming launch of the Vision Pro mixed reality headset, expected to be available to consumers early next year.

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The headset will initially be sold exclusively in Apple stores.

The company’s shares fell over 1% in after-hours trading following the report, reflecting the challenges Apple faces in maintaining growth amid economic uncertainties and market competition.