Apple admits there is a decline in iPhone sales in Q3

Ashwin
Aug 7, 2023
Apple
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Apple posted its financial earnings call for the fiscal year's Q3 last Thursday. The Cupertino-based company has admitted that there was a slowdown in iPhone sales for a third consecutive quarter.

Apple CEO, Tim Cook, announced that the company saw strong sales records for the quarter in India, Indonesia, Mexico, the Philippines, Poland, Saudi Arabia, Turkey and the UAE. Apple also set June quarter records in France, Netherlands and Austria.

He revealed that the sales of the iPhone dropped by 2.4% in the last quarter, with the revenue amounting to $39.7 billion. The Mac lineup meanwhile recorded $6.8 billion but saw a decline of 7% year-over-year. You can listen to Apple's latest earnings call here.

Cook blamed an uneven macroeconomic and currency exchange headwinds for the slump in the iPhone sales. He pointed out that the iPhone sales in China were better than in the U.S., while admitting that buyers in the U.S. were not spending more on the products than they used to. The company said it wasn't alone, and that the entire smartphone industry was affected by the slump.

Why Apple iPhone sales have declined

The decline in Apple iPhone sales could be affected by the longevity of the products. iPhones receive software updates for 5 to 6 years, and the hardware's performance is impressive even after it may have seen a few years. Take the iPhone 13 for example. It has a great camera, an amazing screen, offers good battery life and snappy performance, has an ample amount of storage, supports 5G, etc. You can FaceTime your friends, send iMessages, browse the internet, install the latest social media apps, stream music and videos, etc., on your old phone. The iPhone 13 is available for $599, while the iPhone 14 128 GB costs $799. The newer device barely offers a new experience that justifies the extra 200 bucks.

The upgrades that we have seen on recent iPhones have been unremarkable. The changes in the design are barely enough to distinguish it from the previous gen devices. When Apple announced the iPhone 14, everyone mocked it with memes that said it's exactly the same as the iPhone 13. They were not wrong, the size of the displays of the two iPhones, the bezels around the screen, the buttons, and the cameras on the rear look alike. If you hold the two devices, it may be hard to tell which one is which.

Why Apple iPhone sales have declined

Apple made some improvements to the internals by adding more RAM, and a slightly bigger battery, but stuck with the same processor as the previous gen model for the basic iPhone 14, while the higher end models got a newer chipset. The most impressive upgrade in the iPhone 14 series was, of course, the Dynamic Island. The feature displays contextual-notifications and other information at the top of the screen was welcomed as an innovative change to replace the notch design that had been stagnant for over 6 years But, the Dynamic Island wasn't available on the base iPhone 14 and the iPhone 14 Plus, because Apple made the feature exclusive to the pricier Pro models, i.e. the iPhone 14 Pro and iPhone 14 Pro Max.

A notchless design may look cool, but is that miniscule bit of screen space and a slight bump to the hardware, worth shelling out $1000 for? Unless you're loaded, the answer is probably no. Not everyone upgrades their phones every year. The majority of buyers who switch to new phones frequently are either rich, or have some good trade-in offers, leases or contracts with their mobile service provider that make upgrades affordable. The rest of us hold onto our phones till it slows down, or breaks.

Personally, I think that the only real improvements in the iPhone 14 series were the crash detection system and the emergency SOS via satellite, both of which could be lifesavers. The crash detection system can identify hard collisions to tell if you have been in an accident, and call an ambulance to rescue you, it also notifies your emergency contacts with your location. If you have an Apple Watch Series 8, you already have a crash detection feature in it, which sort of nullifies the need to buy a new iPhone.

The satellite messaging technology is pretty much a niche feature, which may be useful for hikers, campers, or people travelling to remote places where cell service may not be available. But the emergency feature isn't exclusive to Apple's devices, there are many dedicated satellite messengers such as the Garmin InReach which can do the same, though it means you need to carry another device with you. Also, these messengers come with a subscription fee (in addition to their upfront cost), while the iPhone 14 offers the same feature for free, for a limited time. Apple could begin charging for a subscription for using its satellite services in the future. The point is, not everyone may find these useful enough to upgrade from their older iPhone that still works.

What we can expect in the iPhone 15

Apple may have noticed why people are not upgrading to the newer devices. This could explain why the iPhone 15 lineup is getting the Dynamic Island across all models. The upcoming devices will get thinner bezels, which in turn makes the screens slightly bigger. The iPhone 15 and 15 Plus will be equipped with an Apple A16 Bionic chip, which was previously available in the iPhone 14 Pro models. The iPhone 15 Pro and Pro Max will get a newer A17 Bionic chipset. The cameras are said to get an upgrade as well, and the Pro Max could support improved optical zoom with a periscope lens.

The main point to note here are the differences between the iPhone 13/14 and the iPhone 15. If you are getting the Dynamic Island, a bigger display, a more powerful processor with better battery life, improved cameras, titanium frame (for the Pro models) and a USB Type-C port on a new device, these are robust features that could qualify as a proper upgrade, i.e. it may be worth the money.

iPhone 15 to be available from September 22

Mark Gurman says that the iPhone 15 could be launched on September 12th or 13th, which tallies with previous reports. The devices will be available for pre-order in the coming week, around the 18th, and will start shipping from September 22nd. The new line-up could give Apple a boost in the next fiscal year, which begins in October.

Apple is also said to be working on an iPhone 15 Ultra which could be even more expensive than the Pro models, the new device could debut in 2024.

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Apple admits there is a decline in iPhone sales in Q3
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Apple admits there is a decline in iPhone sales in Q3
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Apple has admitted that iPhone sales have slowed down in Q3.
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Comments

  1. John said on August 18, 2023 at 12:06 pm
    Reply

    Really the only thing I dislike about MacOS as a whole is the way Apple updates the OS with huge update file downloads. Actually 700Mb is small compared to some Apple has released which are in the gigabyte size. These large file sizes also translate to long update times as well.

  2. Anonymous said on August 28, 2023 at 1:48 pm
    Reply

    I like Emre, Onur, Shaun and Eray’s articles more, Ashwin and Martin are always complaining about something instead of getting excited and sharing their excitement with the world.

    Ever since I started bookmarking their pages my mood has been so much better, I’m glad to be free of the depressing vibe the two of them have. Damn it feels good to just enjoy life and not look for things to complain like I used to while I were under their influence.

    1. John G. said on September 2, 2023 at 11:31 pm
      Reply

      Personally I really like @Ashwin and @Martin articles both equally. Please respect the authors.

    2. Herman Cost said on September 4, 2023 at 2:37 pm
      Reply

      You realize that none of the authors you like are real people, right? They are AI bots ‘writing’ articles that are basically taken from product advertisements (e.g., “Get Protected the Right Way With Avast Free AntiVirus” Really?) So, yes they are excited, but the excitement comes from advertising copy. No real world negativity from those sources.

      My approach is to use a UBlock Origin filter to block all the articles except those by Martin and Ashwin. It has made the site readable again for me.

      1. Anonymous said on September 5, 2023 at 1:03 pm
        Reply

        I would like to achieve that as well. Mind sharing some UBlock tricks & tips? :)

      2. TelV said on September 5, 2023 at 3:59 pm
        Reply

        @ Anonymous,

        Go to this link from yesterday https://www.ghacks.net/windows-11-update-stuck-fixed-for-good/#comment-4573146 and scroll down to the post by “Anonymous said on September 2, 2023 at 1:33 pm” He (or she) posted instructions on how to skip articles written by users other than Martin and Ashwin.

        You might want to consider changing your name before you post to make it easier for users to identify your comments.

      3. John Wold said on September 5, 2023 at 4:25 pm
        Reply

        @Herman Cost
        You can add this to your rules in uBlock Origin:

        ghacks.net##.hentry,.home-posts,.home-category-post:not(:has-text(/Martin Brinkmann|Ashwin/))

      4. tired said on September 13, 2023 at 3:41 pm
        Reply

        @John World. Than you dude. So much better.

        Why does Martin even allow this garbage to ruin his website. Every single article not written by martin and ashwin reads like sensational clickbait, I don’t care about if I should buy the latest apple product every week, new roblox cock rings that don’t pull your pubic hair, elon musk’s new body spray or whatever bullshit these bots can come up with.

    3. Anonymous said on September 5, 2023 at 2:52 pm
      Reply

      +I like Emre, Onur, Shaun and Eray’s articles more

      you’ve made my day

  3. TelV said on September 5, 2023 at 3:48 pm
    Reply

    It’s not the EU’s fault that Bing is such a crappy search engine. In any event it’s built into the OS and Microsoft does its best to convince users to adopt it over Google by making it the default search tool. A great Many Windows 11 users are not technically minded and don’t know how to switch to another search engine and just accept their lot.

    In any event I hope the EU Commission doesn’t allow Microsoft to pull the wool over their eyes.

    1. Anonymous said on September 5, 2023 at 11:26 pm
      Reply

      Both Google and Bing are now worthless. Nowadays, Yandex is the only search engine that finds anything I’m looking for.

      1. TelV said on September 20, 2023 at 12:33 pm
        Reply

        Try https://sear.be.

        Yandex is Russian and under Putin’s control. Search results you get may not be accurate and possibly manipulated to give you a false sense of security depending on what you’re looking for.

  4. ECJ said on September 5, 2023 at 7:16 pm
    Reply

    Bing is absolutely a gatekeeper. Except for countries such as China and Russia that have their own search engines (Baidu and Yandex), most of the world’s searches relies on just two search engines: Google and Bing.

    Alternative search engines overwhelmingly get their search results from Bing. DuckDuckGo, Ecosia, Qwant, Swisscows, Excite, Lycos, Yahoo, You, etc. all use Bing behind the scenes for their results.

    StartPage originally used the Google search engine for it’s results, but have also started using Bing as well recently.

    Microsoft also use Bing as the default search engine in Windows (such as the Start menu search, Taskbar search, desktop search bar, Edge sidebar, etc.) and use Bing as the default search engine in Edge – which is the default browser on Windows. Windows has greater than 70% desktop market share and is used by more than two billion people.

    Not to mention Microsoft’s anti-consumer efforts when it comes to Bing. They have a history of malicious intent by aggressively trying to trick users who use a different search engine and browser into resetting their default search engine and browser back to Edge and Bing (by displaying unscrupulous popup dialogue boxes and full screen pages prompting the user to change their settings back to the “recommended settings” – which is Edge and Bing).

    1. TelV said on September 20, 2023 at 12:50 pm
      Reply

      @ ECJ,

      Microsoft’s Bing has managed to sidestep the EU’s Digital Markets Act for now arguing that it doesn’t qualify as a gatekeeper: https://www.computerworld.com/article/3705935/eu-lists-gatekeepers-to-be-regulated-opens-imessage-and-bing-investigations.html

      The easiest way to avoid Bing is never to use Edge. It’s not mandatory and you’re free to use which browser you wish. I use Floorp myself which is a Firefox fork with many extra privacy configurations. https://floorp.app/en/download/

  5. ilev said on September 6, 2023 at 8:37 am
    Reply

    “A report claims that Apple is developing an affordable MacBook series”

    Its is time to stop posting Rumors as reports.

    Apple has already a Chrombook killer. It is called : iPad.

  6. John said on September 6, 2023 at 2:47 pm
    Reply

    I can see Apple getting concerned about losing sales to Chrome OS devices. Given that K-12 kids have probably been using Chromebooks and would be familiar with that platform going off to college. I remember when Apple ruled K-12 computer rooms and because they simply out priced the educational sector. Google managed to take a huge bite out of educational market especially with COVID. I never thought iPads worked in a K-12 setting, and mac’s are too expensive. I doubt Apple can really make a MacBook below $500 which would compete with Chromebooks.

    1. bruh said on September 12, 2023 at 5:30 pm
      Reply

      I managed hundreds of ipads for schools when I worked at an MSP – ipads are certainly OK, and boy are they hundreds of times better than Android tablets. Chromebooks suck so much, their market penetration into school system became real when schools received a bunch from government

  7. aibot said on September 7, 2023 at 1:43 am
    Reply

    Apple has always had great diffculty grasping what “low cost” means. I don’t have much faith in them ever generating anything that can compete with a Chromebook, but I’ll buy it if they do. I don’t want a Google OS, Windows is getting painful, and I’m tired of hearing how great Linux is from people who don’t use it.

    I agree with the posters above about the usefulness of using a uBO filter to limit the posts I see on this site to those from Martin and Ashwin.

  8. vector said on September 11, 2023 at 12:01 am
    Reply

    While Apple has patched iOS 16 for this, they haven’t yet indicated if they’re going to for supposedly-still-getting-security-updates iOS 12 (the latest OS option for the millions of still-in-use iPhone 6) and iOS 15 (still in use on millions of iPhone 6s to 8, which can’t be upgraded to 16).

    I hope they do. Long-term support is one area where Apple phones crush Android, and it’s the #2 reason I use them (#1 is because not a privacy nightmare).

    1. vector said on September 13, 2023 at 12:19 am
      Reply

      Apple has now released security updates for iOS 12 and 15 to address this issue. This is how you keep loyal customers.

      1. tinarse said on September 13, 2023 at 7:59 am
        Reply

        Released an update for iOS 15, yes; for iOS 12, no. It’s not clear from reading their release notes if this means iOS 12 is not affected, or if they’re just not bothering.

  9. John said on September 11, 2023 at 1:50 pm
    Reply

    M3 won’t move the needle much on performance. Honestly, Apple has put itself in a bind making the M1 really good. Probably the first time when Mac users can have some real lasting performance. But that also means that many won’t be persuaded to upgrade as often either. I am using a M1 MacBook Air and a M1 Mac mini and have yet to even entertain upgrading to a M2 or even a future M3 model of either because I am very satisfied with the M1 performance.

  10. John said on September 12, 2023 at 12:57 pm
    Reply

    I like iPhone in general have owned iPhones for many years. But I don’t see these Apple events inspiring me to want to upgrade and spend hundreds to get what few improvements offered up.

  11. Anonymous said on September 13, 2023 at 3:10 am
    Reply

    People still watch this nonsense? As I get older technology no longer excite me.

  12. bruh said on September 13, 2023 at 10:22 am
    Reply

    I love it – Apple took an objectively bad thing and turned it into something people don’t hate. “It’s not that our front camera/sensors cover up screen real estate, this is uhh, a dynamic island… Yeah! It’s a feature actually, you’re lucky to have it”.

    1. TelV said on September 20, 2023 at 12:54 pm
      Reply

      @ bruh,

      I like iPhone too, but you have to be a virtual millionaire these days to own one and I don’t have the kind of money required to purchase one I’m afraid.

  13. angelsanges said on September 13, 2023 at 2:33 pm
    Reply

    2015??

  14. Oxa said on September 13, 2023 at 3:40 pm
    Reply

    “Sorry Series 8, Apple Watch Series 9 is as powerful as it is handsome”
    “Apple to release iOS 17 and iPadOS 17 on September 18, and macOS Sonoma on October 26”
    “Apple unveils the Apple Watch Series 9 and Watch Ultra 2”
    “Apple Watch Ultra 2 packs a punch to the older generation”
    “Does it make sense to upgrade to iPhone 15?”
    “iPhone 15 Pro and iPhone 15 Pro Max with Ray Tracing, Action Button announced”
    “Apple announces iPhone 15 series with USB-C port, Dynamic Island”

    Seven Applespams, all pushed out within a few hours. You should rename this site “AppleHack”.

  15. Anonymous said on September 13, 2023 at 11:14 pm
    Reply

    I can’t believe people waste their money on smartwatches. The world has truly gone insane.

  16. Anonymous said on September 13, 2023 at 11:18 pm
    Reply

    A total waste of money. Thats why people can’t afford basic necessities anymore. They just keep falling for Apple’s BS every year.

  17. Anonymous said on September 14, 2023 at 4:02 pm
    Reply

    That is, if you don’t mind paying for Apple and their US Gestapo friends reading your most intimate data to use it against you.

  18. Tom said on September 15, 2023 at 8:17 am
    Reply

    > Apple also updated the macOS Sonoma 14 web page to reveal the release date of its desktop operating system. Sonoma will be released on October 26.

    This is not true. The website says September 29. I have no idea where your October 26 comes from.

    > Rumors suggest that Apple could announce the first M3 Mac in October, though another reliable leaker quashed hopes for any new MacBooks.

    I am not aware of any _current_ rumor that suggests that there will be a M3 Mac before 2024.

    Is this again an AI written article?

  19. Bruce Tech Guy said on September 15, 2023 at 10:03 am
    Reply

    Just an FYI on the USB C situation.
    The iPhone 15 and 15 Plus only use the USB-C end-connector. The actual cable attached to it transfers data at the many years old Lightning cable speed, which is USB 2.0 based. (Max 480 Mbits/s in ideal lab conditions.)
    If you want iPhone USB data transfer at true USB 3.0 speed, then you have to pay more to buy the iPhone 15 Pro or 15 Pro Plus, which transfers data at actual USB 3.0 speed (5 Gbit/s in ideal lab conditions).

    Just another example of Apple using absurd (and very mean-spirited, IMO) down-grading of their lower-priced phone hardware. I mean, who else would sell an $799+ phone in 2023, using a data port that transfers at USB 2.0 speed?
    The USB 2.0 spec was published in year 2000, 23 years ago.
    The USB 3.0 spec was published in 2008 and the USB C connector spec was published in 2014, tho not widely adopted til paird with USB 3.2 in 2017, fyi.

  20. bruh said on September 19, 2023 at 10:11 am
    Reply

    Man, I find this stuff so cringy – but obviously, it appeals to a certain type of person. I have no issue with Apple, my only issue is that every other hardware and software manufacturer seem to just be trying to copy Apple, instead of coming up with original ideas & visions. I don’t blame Apple for “innovating” in whatever direction they feel necessary, I’m just annoyed that nobody else is,,,

    Android is looking more like iOS, Windows 11 is looking more like MacOS, I had to set up a “premium” high-spec Dell laptop recently at work which just looked like a knock-off Macbook. It’s just sad.

    1. Tony said on September 19, 2023 at 4:00 pm
      Reply

      People aren’t going to buy stuff that strays too far from the norm. Take for example foldables. I haven’t seen anyone personally that has one, nor are they “taking the market by storm”.

      RE: Android looking more like IOS:

      That ‘Material You’ garbage is thankfully nowhere near iOS. I think you might be referring to Samsung’s UI though. They try to keep things like Apple to win over Apple users (I think anyways). If it weren’t for Samsung’s UI though, Android would be totally a non-option for me, as Material You is just plain ugly.

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