In 21Q2, Apple demand growth slowed: +6% YoY. In the prior quarter, demand increased +17% YoY. Seasonally speaking, this is not a big quarter for AAPL (Q4 and Q1 encompass keynote drops and holiday season).
Work-from-home trends boosted iPads and Macs last year, but normalization is occurring and evident in a product breakdown: comparative weakness across the board on a YoY basis.
Apple Happiness is stable (64% positive), so existing customers are happy. This isn't a consumer flee event, rather a slow down vs. Covid-induced growth recorded last year.
It's also important to keep in mind our data is capturing English-speaking mentions.
Last quarter, International sales accounted for 64% of total revenue, up from 61% in 20Q1. Cook noted, “China was strong across the board,” with revenue up +57% YoY to $21.3 billion.
Potential bright spots lie in ongoing services revenue and a new Mac lineup.
Its new M1 chips have very high consumer happiness (95% positive). Its new line of iMacs stole the show at its event last week.
Apple Service usage mentions (Apple Music, Apple Fitness, Apple TV subscriptions, Apple Pay, Apple One, etc.) have increased 23% YoY but are lower vs. last quarter.