Apple announced its third-quarter financials this Thursday and it beat Wall Street expectations. According to Apple’s finances, its overall revenue ticked up 5%.
iPad, which has been trailing for the last few years, saw the biggest category increase for the quarter. The iPad numbers are up to $7.2 billion from $5.8 billion year over year. This category saw huge growth due to the largest line refresh in years. It also helped counter slowed iPhone revenue. iPhone revenue dropped from $39.7 billion to $39.3 billion year on year.
Despite not seeing a growth in sales, iPhones remained the most important category for Apple by a wide margin. The second best category is its service business which includes things like iCloud, Apple TV+, and Apple Music. This category also saw growth. The number reached $24.2 billion from $21.2 billion in the same quarter.
The iPhone growth has slowed down in the China region, the iPhone sales in China declined from $15.8 billion to $14.7 billion for the quarter.
The drop in iPhone sales in the region has hurt the bottom line of Apple. It was the third most important region for Apple after the Americas and Europe. In May, Apple aggressively discounted the iPhone prices in China to fend off competition from homegrown brands like Xiaomi and Huawei. This strategy allowed the company to record a 40% growth in sales from the previous year in the month.
Due to the extensive ban on Huawei, the company has been producing its own software and chips as an alternative and now they’ve gained a sizable rebound in their home country.
Huawei shows 41% growth year over year for the quarter. The company beat Apple’s iPhone number in China. Huawei sold 10.6 million for the quarter, while Apple only sold 9.7 million units.
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