Apple Inc. reported disappointing third-quarter sales of the iPhone, its flagship product, overshadowing growing services sales at the world’s most valuable company.
Revenue from the device slipped 2.4% to $39.7 billion, Apple said in a statement Thursday, compared with an estimate of $39.8 billion. Overall revenue of $81.8 billion came in just above projections, helped by gains in services. The company didn’t provide formal guidance for the current period.
The results show that even the much-prized iPhone is suffering from a broader smartphone slump. Qualcomm Inc., a mobile-device chipmaker and iPhone supplier, had sparked fears about demand with its earnings Wednesday, sending its shares plunging ahead of Apple’s report.
Apple also had a dearth of new products last quarter — beyond marginal updates to its high-end desktop computers and a larger MacBook Air. The current quarter will be a different picture, with the new iPhone 15 and Apple Watches set to be unveiled during the period.
Apple shares fluctuated in extended trading after the report was released, rising about 1% before falling. They were already up 47% in 2023 through the close, part of a broader tech-fueled rally this year.
(Updates with iPhone sales figure in second paragraph.)
