What were Apple's latest financial results?

Apple reported a record $112 billion in net income and $102.5 billion in quarterly revenue, with projections for a record December quarter.

Why did Apple announce layoffs despite strong profits?

Apple conducted rare layoffs affecting dozens in its sales department due to a reorganization aimed at connecting with more customers.

Is the new iPhone Air selling well?

No, the iPhone Air is significantly underperforming sales expectations, selling only about a third of its optimistic forecasts.

Home / Business and Economy / Apple's Record Profit Hit by Layoffs and iPhone Air Flop

Apple's Record Profit Hit by Layoffs and iPhone Air Flop

26 Nov

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Summary

Apple achieved record net income of $112 billion and forecast record December quarter revenue.
Despite strong financials, dozens were laid off due to sales department reorganization.
The new iPhone Air is underperforming, selling only a third of optimistic expectations.

Apple's Record Profit Hit by Layoffs and iPhone Air Flop

Apple concluded its fiscal year with exceptional financial results, reporting a record $112 billion in net income and exceeding expectations with $102.5 billion in quarterly revenue. The company anticipates the upcoming December quarter will be its best ever, driven by strong iPhone sales and robust gross margins. This success story is tempered by recent news of layoffs within its sales department, impacting "dozens" of employees as part of a company reorganization.

The latest iPhone 17 series is showing strong demand, outpacing its predecessor in key markets like the U.S. and China, possibly indicating a renewed consumer appetite for upgrades. However, the new iPhone Air has faced considerable headwinds. Despite significant pre-launch hype and a radical redesign, its sales have fallen drastically short of internal forecasts, leading to reduced production plans and prompting an analysis of its pricing strategy and feature compromises.