Mac, iPad, Apple Watch and AirPod revenues were all down for Apple's 2023 fourth quarter. iPhones were the only hardware product that grew, but services which include subscriptions to Apple TV, iCloud and Apple Music also continue to expand.
Though it may be too early to suggest this is a definitive trend, it is possible that consumers no longer feel they need the latest device, given the price and performance of what they already own, even as they are apparently willing to pay for more content. This is a development worth watching, as intangibles like services once again surpass tangibles in yet another sector. JL
Samuel Axon reports in ars technica:
Apple reported its
earnings for the fourth quarter of its 2023 fiscal year,
and while the revenue dollar count was enormous as usual, the company reported lower year-over-year revenue for the third
consecutive quarter. The iPhone was the only hardware product that saw any growth compared to last year; revenue was down across the rest of the board
for Mac, iPad, and wearables (primarily Watch and
AirPods). The company's services business again beat expectations and helped make
up for lagging hardware sales. Services is a large bucket that includes
many things, from subscriptions like Apple TV+, iCloud, and Apple Music
to the company's search deal with Google