Apple Is Stable, but There Are Certain Difficulties

Bloomberg insider Mark Gurman in his latest weekly Power On newsletter shared his views on Apple's Q3 report.

Apple unveiled its quarterly report this week. Apple's third-quarter revenue was $83 billion, as predicted by Wall Street, with $40.7 billion of that coming from the iPhone sales. The company's expectation that revenues would fall by $8 billion due to supply chain problems proved exaggerated.

However, Macs, iPads and the wearable devices are down year-on-year sales. While iPad sales beat analysts' expectations, Mac and wearable device sales came in well below expectations.

Mark Gurman notes that the decline in Mac sales hasn't surprised Apple. Delayed sales of new Macbooks announced on 6 June led to a decline in sales for the quarter. Thus, Mac sales in the third quarter were $1 billion lower than the previous year.

Gurman remains optimistic and says that Mac sales will recover in the fourth quarter with the new MacBook Pro and MacBook Air. In addition, Apple will get a boost from the launch of new Mac Minis and high-end MacBook Pros later this year. Moreover, Gurman predicts new Mac Pro, iMac and 15-inch MacBook Air.

As for the iPad, the company is facing supply issues, although there are no problems with demand.

Apple's wearable devices and accessories, such as Apple Watch, AirPods, Beats, HomePod and Apple TV, have stopped generating much revenue. Tim Cook believes that economic factors caused a problem with them. People were spending less money on these products because they were worried about the economic situation.