“Apple is a person,” said Tony Sacconaghi, an analyst at Bernstein Research. “Not surprisingly, even this major consumer brand is not immune to economic headwinds.”
The services business posted the lowest quarterly sales growth this quarter, rising 5 percent to $19.19 billion. It seems that the company intends to avoid such a slowdown in the current period. This week, monthly prices for Apple Music were increased by $1 and Apple TV+ by $2. He also said he would start taking a 30 percent commission on promotional payments to boost social media posts, and would start taking a 30 percent commission on transactions with non-fungible tokens on iPhone and iPad.
“This is now, in a difficult economic environment, showing that their business is strong,” said Trip Miller, founder of Gullane Capital Partners, an investment firm based in Memphis, Tennessee.
However, the biggest challenge facing Apple is its supply chain. China makes over 90 percent of the iPhones it sells worldwide, as well as many of its iPads and Macs. Severe restrictions imposed in the country due to the coronavirus prompted it to close factories to suppress outbreaks, costing Apple about $4 billion in lost iPad and Mac sales. Those concerns first extended to the iPhone factory this week when Foxconn reported a Covid outbreak at Apple’s assembly plant in Zhengzhou, China.
Apple is also coping with growing geopolitical tensions between the US and China. Beijing’s military provocations have inspired Washington to examine the supply chain risks in the event of a Chinese invasion of Taiwan. The White House recently imposed new restrictions on the sale of US technology to Chinese chipmakers, and Chinese President Xi Jinping last week urged his country to be prepared for “dangerous storms.”