The company is shifting its focus to subscription services, such as iCloud, Apple TV+, and Apple Music, which saw a 14% increase in revenue. Apple is also planning to release two new iPads and the M4 chip at an event next week. However, the company's chip progress may soon face competition from Microsoft. Apple's Vision Pro sales were lower than expected, but the company remains optimistic about its potential.
Key takeaways:
- Apple reported a 10% drop in iPhone sales for the second fiscal quarter, partly due to an 8% drop in China and slow adoption of AI.
- Despite the drop in hardware sales, Apple beat Wall Street expectations due to an increase in services revenue and a $110 billion stock buyback.
- Apple is expected to release two new iPads at a standalone event next week, and more hardware is likely to be announced at the annual World Wide Developers Conference in June.
- Apple launched Apple Vision Pro during the quarter, but reports suggest that sales were worse than anticipated.