Understand better than anywhere else [Apple Q4 financial results summary]

● iPhone sales, which account for about half of sales, are sluggish due to shrinking smartphone demand around the world,From a 2.4% decrease in the previous fiscal year to a 2.7% increaseBusiness performance has improved markedly. High-ranking models with high prices in the new model “iPhone 15” series that went on sale in late September were actively sold, and an increase in sales was secured.

● What is the sales of the service division such as app sales and music distributionHit a record high for 3 consecutive quartersThe ratio to total sales rose 4 points from the same period last year, reaching about 25%. The service sector is an important field for Apple to realize business diversification, and it also reflects changes in consumer trends and needs more quickly.

● With the exception of iPhones, sales of other hardware products declined. Sales of the PC “Mac,” which accounts for 10% of total sales, were compared to the same period last year33.8% reductionAmong the main products, the decline was the biggest. Sales for the same period last year due to supply stagnation in 22/4/6 recorded a record high due to a rapid recovery in sales, so sales fell sharply in the fiscal year ending 23/7/9. Although iPad sales exceeded market expectations, it was the 7th decline in sales in the past 8 quarters. Sales in the wearables/consumer electronics division, which includes Airpods and Apple Watch, also did not reach market expectations.

In the Greater China region, which is one of the main markets, sales for the fourth quarter fell 2.5%. The effects of the exchange rate and restrictions on the use of iPhones by Chinese state-owned enterprises, etc. became headwinds, and competitor China Huawei Technology (Huawei) announced new models,New competition in ChinaI'm facing it. JPMorgan analyst Samik Chatterjee pointed out this week that concerns about declining market share of the “iPhone 15” series in China and sluggish consumption motivation around the world have intensified, and Apple's stock price is heading towards a tougher challenge.

However, the company's Chief Executive Officer Tim Cook (CEO) said at the financial results briefing, “iPhone sales in China for the July-9 fiscal year reached a record high for the same quarter. Overall sales in India were also at record highs,” he pointed out. “Asia is a very important market, and we look at it very optimistically,” he emphasized. In other regions, sales were secured in the Americas, and Europe and Asia Pacific also declined slightly.

While the generative AI (artificial intelligence) boom that creates sentences, images, etc. continues among major US IT companies, and the effects of introducing AI technology are beginning to be seen, Apple is also actively incorporating it into the introduction of AI technology. Mr. Cook said at the financial results briefing that the companyIs investing “quite a bit” in generative AIpointed out. “Product progress will be seen over time,” and the idea that such technology will become the core of the product was expressed.

The company's Chief Financial Officer Luca Maestri (CFO) was on a conference call with analysts, and sales for the first quarter of '24 (fiscal year ending 10-12), which overlapped with the year-end sales season, wereIt will be on par with the previous yearIt showed that outlook. This sluggish outlook did not reach market predictions, which suggests that the recovery in growth expected by investors is not expected. Stock prices temporarily fell about 3% from the closing price on the same day due to overtime trading in the US stock market on the 2nd.

Ahead of the most important holiday sales season for boosting Apple's performance, what investors were most interested in was competition with domestic manufacturers in the Chinese market to see if sales results of the new model “iPhone 15” series and sales in the service division could further break records. Attention is being paid to whether the world's largest big tech company, with a total market value approaching 2.8 trillion dollars, can overcome sluggish performance growth with product advancements that have repeated AI investments in a tough macroeconomic environment.