Apple's Q3 revenue exceeded expectations! IPad sales surge helps Apple overcome iPhone decline

Apple's most important business remains the iPhone, accounting for approximately 46% of the company's total sales for this quarter. This quarter, iPhone revenue reached $39.29 billion, which is higher than other product lines but a 1% decrease compared to the same period last year when it was $39.67 billion.
The decline in iPhone sales can be largely attributed to the Greater China region. Overall, sales in the region decreased from $15.8 billion to $14.7 billion this quarter. According to Reuters, Canalys' data last week showed a significant decline in iPhone sales, with sales dropping from 10.4 million units to 9.7 million units this quarter, a decrease of 6.7%. According to Canalys' data, Huawei's total sales in the Chinese market this quarter reached 10.6 million units, surpassing Apple and growing by 41% year-on-year. The third quarter is the second consecutive quarter of global iPhone sales decline. This news has put additional pressure on the company's generative AI strategy, which was formulated at WWDC in June.
Due to Apple's release of the latest iPad Pro and iPad Air a few months ago, after several seasons of weak sales, the new products significantly boosted the iPad business, bringing in $7.16 billion, an annual increase of 24%. Cook stated that approximately half of iPad buyers are first-time buyers, indicating that the tablet market is not yet saturated. Mac computer sales increased by 2% to reach $7 billion.
In addition, Apple's wearable devices, home and accessory products experienced a decline in revenue this quarter, with sales dropping by 2% to $8.1 billion.
Services are Apple's most important growth category, including hardware warranty, Google revenue, monthly cloud storage subscriptions, and the company's content subscriptions, such as software products including iCloud, Apple TV+, and Apple Music. The company reported service sales of $24.21 billion, an increase of 14%, which is in line with expectations.
CEO Tim Cook stated in a conference call with analysts that the launch of an artificial intelligence technology called Apple Intelligence will add value to the company's products. What we are doing is redeployed many people who are engaged in other jobs to the field of artificial intelligence, "Apple executives pointed out. From the perspective of data centers, as you know, we adopt a hybrid approach. So we have both our own data centers and partners. Therefore, capital expenditures will be included in the financial status of our partners, and we will pay the fees
Cook stated that artificial intelligence will provide "convincing reasons" for iPhone users to upgrade to new phones.