Apple largely compensated with significant increases elsewhere. iPad sales are the star of the show this time, as they increased by 24%. Before we pronounce the tablet renaissance has arrived, though, it’s important to note that this sharp jump comes after last-year’s sharp decline. 2023 was the first year in the iPad’s history when we didn’t see any new models in the product line, which seemed to be reflected in sales at the time.
So, in 2024, Apple managed to return with a splash by introducing the impossibly-thin iPad Pro M4 and the I-can-actually-afford-it iPad Air M2, which make for a very impressive tablet family by all accounts. During this fiscal Q3, Mac sales have risen about 2% YoY, which, for the record, should probably also be considered a mostly “flat” performance.
Anyways, the Services category continued its smooth and steady performance to reach a record high, proving Apple’s monstrously effective move into recurring revenue streams from non-hardware products a big win.
What’s going on with the Vision Pro?
Sales fell by about 2% for Apple’s wearables segment, which includes watches, earbuds and the fledgling AR/VR category represented by the Vision Pro. The company’s debut headset is expected to be a glimpse of the future, but at this point in time at least, it appears that future is still very far down the line.
Apple simply cannot rely on the Vision line in its current form for any meaningful growth, so I wouldn’t be surprised if it comes out the gate with some more or less unexpected products in the short-term. A foldable iPhone, anyone?
Apple Intelligence may already be helping sales!
Speaking of short-term boosters, the reality is the solution doesn’t always have to come from hardware. In fact, the announcement of Apple Intelligence earlier this year at WWDC may already be a positive contributing factor for Apple’s sales this year. Sure, launching new iPad models surely helps, but what about the features of these models?
With Apple Intelligence expected to run and integrate seamlessly with Apple’s complete product line-up, from the iPhone to the Mac to the iPad, one can see how there may be a wave of renewed optimism towards Apple’s products this year.
Yep, in 2024, the super-futuristic Vision Pro goggles couldn’t do it, but writing tools, email summarizer and Genmoji? These seem to be having people scream “Yes, please!”
If anything, Apple’s fiscal Q3 numbers reveal a humongous yet diversified and adaptable company. Sure, the iPhone still accounts for more than 40% of Apple business, but overall, the range of products and especially services Apple offers as part of its mythical ecosystem seem to be getting more and more robust.
And what is your take? What do you think will be Apple’s biggest winner in the near future? Will it be Apple Intelligence? Will it be future entries in the Vision line? Or maybe it’ll be a foldable iPhone? Sound off in the comments!
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