SAN FRANCISCO (AP) — On January 30, 2025, Apple reported a slight decline in iPhone sales during the holiday season, marking a challenging period for the tech giant as it seeks to enhance its artificial intelligence capabilities. The company’s iPhone revenue dropped by approximately 1% compared to the same quarter last year, highlighting difficulties in maintaining market share, particularly in China.
- Apple iPhone sales dipped slightly during holidays.
- AI features launched just before Halloween.
- iPhone market share declining in China.
- Stock price surged 30% last year.
- Services division revenue increased 14%.
- Google search engine deal faces legal challenges.
Apple’s recent quarterly earnings report revealed that the company earned $36.3 billion, or $2.40 per share, which is a 7% increase from the previous year. Overall revenue rose by 4% to $124.3 billion, despite the decline in iPhone sales. The iPhone generated $69.1 billion in revenue during this period. However, in China, Apple’s revenue fell to $18.5 billion, reflecting an 11% decrease year-over-year.
The decline in iPhone sales is partly attributed to the late rollout of AI features, which were introduced just before Halloween. This delay has affected Apple’s ability to compete effectively in key markets, especially in China, where the company has lost market share to local competitors like Huawei and Xiaomi. According to International Data Corp., Apple’s iPhone shipments in China dropped nearly 10%, while Huawei and Xiaomi saw increases of over 20%.
Apple’s services division remains a strong revenue source, generating $26.3 billion in the last quarter, a 14% increase from the previous year. However, concerns linger about the future profitability of AI investments, especially as competitors like Microsoft and Google ramp up their AI efforts. The stock price has fluctuated, reflecting investor anxiety about the slower-than-expected demand for AI-enhanced devices.
In summary, Apple’s iPhone sales have faced challenges during the holiday season, with a slight revenue decline and significant competition in key markets. The company’s overall performance exceeded analyst expectations, but concerns about AI integration and market share remain critical issues for future growth.
