Apple's Net Sales Fall By Three Quarters In Row, Declares Dividend For Shareholders

Tech giant, Apple recorded a slight decline of 1% YoY in its net sales to $81.8 billion in the third quarter of its fiscal 2023, compared to sales of $82.96 billion in Q1 of the previous fiscal. This would be a third consecutive drop in Apple's sales. The World's largest phone maker saw a fall in sales across categories except for the wearables, home and accessories, and services segment. iPhone sales, the biggest contributor to the top line, fell by 2.44% YoY in the quarter. However, the company's net income was marginally up.

On an expected line, iPhone sales dipped by 2.45% to $39.67 billion in Q3 of the current fiscal, compared to $40.67 billion sales a year ago same quarter. Also, sales of Mac dived by 7.34% YoY to $6.84 billion, while iPad sales plunged by 19.84% YoY to $5.79 billion.

However, sales of wearables, homes and accessories picked up marginally to $8.28 billion in Q3 versus $8.08 billion in the same quarter of the previous fiscal. Finally, sales of the services segment continued to be at a record high to $21.21 billion in Q3, rising by 8.21% from $19.60 billion in Q3 of the previous fiscal.

Tim Cook, Apple's CEO said, "We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone."

While Luca Maestri, Apple's CFO on the financial performance said, "Our June quarter year-over-year business performance improved from the March quarter, and our installed base of active devices reached an all-time high in every geographic segment."

Meanwhile, Apple's net income gradually rose by 2.26% to $19.88 billion in Q3, as against $19.44 billion a year ago same quarter.

Earnings per diluted share of $1.26, up 5% year over year.

Despite the decline in sales, Apple has still topped the street's expectations.

Maestri added, "During the quarter, we generated very strong operating cash flow of $26 billion, returned over $24 billion to our shareholders, and continued to invest in our long-term growth plans."

Also, Cook said, "From education to the environment, we are continuing to advance our values, while championing innovation that enriches the lives of our customers and leaves the world better than we found it."

The company's board declared a cash dividend of $0.24 per share of its common stock. The dividend is payable on August 17, 2023, to shareholders of record as of the close of business on August 14, 2023.

On Thursday, Apple's share price ended at $191.17 down by 0.73%. After hours, the stock has tumbled by more than 2%.