Apple Reports Slump in Sales and Profit

In recent months, Apple has been dealing with various challenges. The company has faced legal action from the Justice Department, financial penalties from European regulators, and competition from Chinese smartphone manufacturers. However, the most recent setback came on Thursday when Apple reported a decline in its business performance.

According to the report, Apple's sales for the three months ending in March dropped by 4 percent to $90.8 billion. Revenue from iPhones, iPads, and wearables such as the Apple Watch decreased compared to the same quarter last year, while sales of software and services saw an increase. Additionally, the company's profit fell by 2 percent to $23.64 billion, marking Apple's first quarterly decline in a year.

Struggles in China

Apple's challenges were particularly notable in China, the world's second-largest smartphone market. Sales in China experienced an 8 percent decrease, partly due to the waning popularity of the iPhone following the introduction of a new 5G smartphone by Huawei, a company restricted by the Trump administration from collaborating with U.S. technology firms. Counterpoint, a technology research firm, reported a 4 percent drop in Apple's share of smartphones sold in China last quarter. Despite the concerning results, Apple's stock rose by 6.5 percent. The company slightly exceeded Wall Street predictions for quarterly sales and profit, and its performance in China was better than anticipated. As a response, Apple announced plans to repurchase $110 billion of stock and expressed confidence in increasing sales in the current quarter.