Apple’s slower device sales continue to weigh on earnings

Apple on Thursday posted its fourth consecutive quarter of year-over-year sales declines as the iPhone maker continues to struggle with slower device sales amid an uncertain economic environment.

The company reported $89.5 billion in sales for the three months ended September 30, down 1% from the same period in the prior year and essentially in line with the $84.3 billion Wall Street analysts had expected. Despite the sales dip, Apple’s net income from the quarter grew nearly 11% year-over-year to $22.96 billion, beating analysts’ projections.

Apple (AAPL) shares fell more than 1% in after-hours trading following the report.

Revenue from Apple’s products segment dipped more than 5% year-over-year during the September, driven in particular by declines in Mac and iPad sales. iPhone revenue, however, ticked up by 3% from the year-ago quarter to $43.8 billion.

The sales numbers may provide an early indication of the performance of the iPhone 15, following concerns from analysts that consumers would have fewer incentives to upgrade because the new lineup featured only minimal improvements. However, the iPhone 15 lineup went on sale only eight days before the end of the September quarter, so its real impact likely won’t be felt until Apple reports for the crucial holiday quarter. And the company also announced upgrades to its lines of laptops and desktop computers earlier this week.

“We believe this precarious macro [economic] environment, combined with a mature market, will lead to an uninspiring iPhone 15 cycle,” Brian White, an analyst at Monness Crespi Hardt said in a research note ahead of Apple’s Thursday earnings report.