Apple sees 10 percent revenue growth driven by iPhone sales and China

In the third quarter of this year, Apple Inc. posted impressive earnings, showcasing its resilience in a competitive market. The company reported a revenue growth of 10 percent year-over-year, amounting to $94.04 billion, marking its most substantial quarterly revenue increase since December 2021. This growth was significantly bolstered by a 13 percent increase in iPhone sales, which totaled $44.58 billion. The surge in iPhone sales can be attributed to the successful launch of the iPhone 16, which has been widely received by consumers, surpassing the sales of its predecessor. Beyond the iPhone, Apple’s Mac business also experienced growth, with revenue rising nearly 15 percent to $8.05 billion. This notable increase was propelled by the introduction of updated MacBook Air laptops, which are among the company’s best sellers. Apple’s services sector, encompassing warranties, content subscriptions, and licensing deals with Google, saw a continued upward trajectory, reaching $27.42 billion in revenue, which represents a 13 percent increase. During the earnings call, CEO Tim Cook emphasized the ongoing expansion of iCloud subscriptions and reported that App Store revenue grew in double digits during this quarter. However, not all segments performed well. The iPad sales witnessed an 8 percent decline, totaling $6.58 billion despite the earlier launch of a low-cost model in March. Similarly, revenue from Apple's wearables unit, including the Apple Watch and AirPods, also experienced a decline of 8.64 percent, generating $7.4 billion. These mixed results reflect the challenges Apple faces in certain product categories, even as it thrives in others. A highlight of Apple's recent performance was in the Chinese market, where sales rose 4 percent year-over-year to $15.37 billion. This growth reversed a decline trend observed in previous quarters, bolstered by a Chinese government subsidy for specific devices. In addressing investor concerns about the impact of emerging technologies and artificial intelligence, Cook expressed confidence that AI will complement rather than compete with the iPhone. He underscored Apple’s commitment to investing significantly in AI and integrating it into the company's products and services.