Apple reports profit despite decreased sales

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Technology company Apple posted less turnover in the past quarter than in the same period a year ago. Turnover from the sale of the iPhone, however, increased and below the line there remains a profit of more than $ 24 billion. “Apple has done reasonably well,” says stock market analyst Jos Versteeg of InsingerGillisen.

Apple store in New Delhi. In India in particular, many refurbished iPhones are sold, which are first handed in, disassembled and then refurbished. (ANP / Zuma Press)

More expensive iPhone

The increase in turnover comes as a surprise to Versteeg. But there are three reasons that may explain where that increase comes from. “First of all, Apple is growing in emerging markets such as India, Indonesia, Latin America and the Middle East,” explains the stock analyst. “Particularly in India, many refurbished iPhones are sold, which are first handed in, dismantled and then refurbished.”

“Two years ago the selling price was about $850, now it’s a thousand”

Jos Versteeg, stock market analyst at InsingerGillisen

In addition, the prices of the iPhones have also risen sharply in the past year. An iPhone Pro Max costs more than a thousand dollars in America. According to Versteeg, the average selling price of the phones has risen considerably across the board in recent years. “Two years ago the retail price was about $850, now it’s a thousand.”


Third, some of the issues Apple faced last quarter are now benefiting the company in part. For example, in the last quarter of 2022, the Foxconn factory in Zhengzou had to deal with employees who climbed over the fences because of a corona outbreak. A large part of the staff left and Apple ran into problems with the production and delivery of the iPhones.

Many consumers therefore decided not to put the iPhone under the Christmas tree as a gift. Then he only had to come a few months later, for example with the Easter bunny,’ says Versteeg. That moment is now and that is also reflected in Apple’s turnover. iPhone sales account for 54 percent of the company’s total revenue.

Weak consumer

Yet the company also knows the necessary pain. The computer market has fallen by more than twenty-five percent and consumers in both America and Europe are weak. ‘Apple really depends on the consumer, it is largely a consumer company. So in that respect I think they have done a reasonable job’, says the stock market analyst.

“The share price has already risen by thirty percent this year”

Jos Versteeg, stock market analyst at InsingerGillisen

However, the market reacted less enthusiastically to Apple’s figures, but that is not surprising, according to Versteeg. ‘The share price has already risen by thirty percent this year, so I get it. Then you really have to come up with a bang if you want to see a significant effect on the course.’

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