Apple didn’t release new iPads last year, and now its sales are way down

Tomorrow, Apple will launch its Vision Pro headset, marking the company’s most high-profile product launch since the original Apple Watch. And later this year, it will open up the iPhone’s App Store (at least in the EU) in new ways, offering developers more freedom — even if some of them are already displeased with the approach Apple is taking. There are enormous moments ahead for this company, and in the run-up to all of that, today Apple announced its Q1 2024 earnings. At least for now, the pivotal question surrounding Apple’s business remains the same as always: how’s the iPhone doing?

Pretty well, it turns out. This was the first full quarter of iPhone 15 sales, and Apple reported iPhone unit revenue of $69.7 billion. (Just a few weeks ago, Apple surpassed Samsung and took the lead position for global smartphone shipments.) So there’s strong demand for the company’s latest phones up and down the line. On the whole, Apple reported revenue of $119.58 billion, which was enough to beat Wall Street expectations.

“We are pleased to announce that our installed base of active devices has now surpassed 2.2 billion, reaching an all-time high across all products and geographic segments,” CEO Tim Cook said in the company’s press release. “As customers begin to experience the incredible Apple Vision Pro tomorrow, we are committed as ever to the pursuit of groundbreaking innovation — in line with our values and on behalf of our customers.”

iPad revenue continued its slump at $7.02 billion, which was down by 25 percent year over year. 2023 was the first year since 2010 where Apple didn’t release any new iPad hardware, so the lackluster sales can be attributed to that. But redesigned iPad Pros featuring OLED displays are rumored to be announced as early as March, which could give Apple’s tablet business a much-needed revenue jolt at the high end.

Combined revenue for wearables, home, and accessories came in at $11.9 billion. Apple had to briefly halt sales of its Apple Watch Ultra Series 2 and Apple Watch Series 9 at the tail end of the holiday shopping season. This was the result of an import ban stemming from the company’s patent dispute with medical device maker Masimo. Apple has since disabled the blood oxygen sensor at the center of the battle via software, and both smartwatches are back on store shelves. Apple’s services business hit an all-time revenue record and brought in $23.1 billion.