Apple’s stock price fell in after-hours trading on Thursday after the company reported its third consecutive quarter of declining sales. The Cupertino, California-based tech giant said that revenue for the quarter ended July 1 was $81.8 billion, down 1% from the same quarter last year. Earnings per share were $1.26, up 5% from the year-ago quarter.
The decline in sales was driven by a drop in iPhone sales. Apple said that iPhone revenue fell 2% to $39.67 billion in the quarter. This was the third consecutive quarter of declining iPhone sales, and it marks the first time that iPhone sales have declined for three straight quarters since 2016.
Apple’s other product categories also saw declines in sales. Mac sales fell 7% to $6.84 billion, and iPad sales fell nearly 20% to $5.79 billion.
The decline in sales is likely due to a number of factors, including the ongoing chip shortage, rising inflation, and the war in Ukraine. The chip shortage has made it difficult for Apple to get the components it needs to manufacture its products, and rising inflation has made it more expensive for consumers to buy Apple products. The war in Ukraine has also disrupted Apple’s supply chain, as the company sources some of its components from Ukraine.
The decline in sales is a sign that Apple is facing some challenges. However, the company still has a strong balance sheet and a loyal customer base. Apple is also investing heavily in new products, such as its augmented reality headset, which could help the company grow in the future.