Apple’s sales have experienced a decline, despite a surge in demand for its iPhones and services such as Apple TV+. The company reported a 1% decrease in revenues to $89.5 billion in the three months ending on 30 September compared to the same period last year. This marks the fourth consecutive quarter of declining sales. However, profits reached $23 billion, driven by record iPhone sales and increased revenue from services like iCloud and Apple Music.
The sales of Mac computers and iPads struggled after a surge in interest following the lockdown period. The company expressed concerns about potential supply chain issues affecting the delivery of its new iPhone 15 Pro and Pro Max devices. Apple’s CEO, Tim Cook, assured investors that the company is working diligently to address these challenges and expects to achieve a balance between supply and demand in the near future.
Despite the strong performance of iPhones and services, other Apple products have not been as successful in capturing consumer interest. Sales of Mac computers, for instance, dropped to $7.6 billion for the quarter, down from $11.6 billion the previous year. Additionally, economic uncertainty in the Chinese market has impacted Apple’s sales, with a 2.5% decline reported. However, after accounting for foreign exchange rates, the company’s business in China showed year-on-year growth.
Apple’s operations in China have been affected by Covid restrictions and US-China tensions. CEO Tim Cook made a surprise visit to China last month, emphasizing the importance of the Chinese market to Apple. Despite the challenges, he expressed confidence in the company’s relationship with China, which serves as a key manufacturing base.
Original news source: Apple sales dip again despite iPhone boost (BBC)
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Group or Classroom Activities
Warm-up Activities:
– News Summary
Instructions: Students will work in pairs to summarize the article in five sentences, focusing on the main points: Apple’s sales decline, the surge in iPhone demand, Mac and iPad sales struggle, supply chain issues, and the situation in China. Each pair will then present their summary to the class.
– Opinion Spectrum
Instructions: Place a line on the floor with tape, designating one end as “Strongly Agree” and the other as “Strongly Disagree.” Read out statements related to the article such as “Apple will overcome its current sales challenges quickly” or “The demand for iPhones will continue to surge.” Have students position themselves along the line according to their opinion and discuss their reasoning with the person next to them.
– Headline Creation
Instructions: Students will create an attention-grabbing headline for the article that captures the essence of the information provided. Encourage creativity and the use of puns or wordplay. Afterward, students will share their headlines and the class can vote on the most effective one.
– Sketch It
Instructions: Divide the class into small groups. Each group is assigned a different part of the article (iPhone sales, Mac and iPad sales, supply chain issues, China market, etc.). They have to create a quick sketch or a series of sketches that represent their assigned section. After completing their sketches, they present them to the class, explaining how their drawings relate to the article’s content.
– Future Predictions
Instructions: Students will write a short paragraph predicting the future of Apple’s sales and market strategy based on the trends mentioned in the article. They should consider the impact of supply chain issues, the Chinese market, and the popularity of iPhones and services. After writing, they’ll share their predictions with a partner and discuss the potential outcomes.
Comprehension Questions:
1. By what percentage did Apple’s revenues decrease in the three months ending on 30 September compared to the same period last year?
2. How many consecutive quarters has Apple experienced declining sales?
3. What was the profit Apple reached in the quarter, and what drove this profit?
4. What issues did Apple express concerns about regarding the delivery of its new iPhone models?
5. By how much did sales of Mac computers drop for the quarter compared to the previous year?
6. What impact has economic uncertainty in the Chinese market had on Apple’s sales, and what was the reported decline?
7. How has Apple’s business in China shown year-on-year growth after accounting for foreign exchange rates?
8. What was the purpose of CEO Tim Cook’s surprise visit to China last month?
Go to answers ⇩
Listen and Fill in the Gaps:
Apple’s (1)______ have (2)______ a decline, despite a (3)______ in demand for its iPhones and services such as Apple TV+. The (4)______ reported a 1% decrease in revenues to $89.5 billion in the three months ending on 30 September compared to the same period last year. This marks the fourth consecutive quarter of declining sales. However, profits reached $23 billion, driven by record iPhone sales and increased revenue from services like iCloud and Apple Music.
The sales of Mac computers and iPads struggled after a surge in interest following the lockdown period. The company expressed concerns about potential supply chain issues affecting the delivery of its new iPhone 15 Pro and Pro Max devices. Apple’s CEO, Tim Cook, assured (5)______ that the company is working diligently to address these (6)______ and expects to (7)______ a (8)______ between supply and demand in the near future.
Despite the (9)______ performance of iPhones and services, other Apple products have not been as successful in capturing consumer interest. Sales of Mac computers, for (10)______, (11)______ to $7.6 billion for the quarter, down from $11.6 billion the previous year. Additionally, economic uncertainty in the (12)______ market has impacted Apple’s sales, with a 2.5% decline reported. However, after accounting for (13)______ exchange (14)______, the company’s business in China showed year-on-year growth.
Apple’s operations in China have been affected by Covid restrictions and US-China tensions. CEO Tim Cook made a surprise visit to China last month, emphasizing the importance of the Chinese market to Apple. Despite the challenges, he expressed (15)______ in the company’s relationship with China, which (16)______ as a key manufacturing base.
Go to answers ⇩
Discussion Questions:
Students can ask a partner these questions, or discuss them as a group.
1. What is your opinion on the importance of the Chinese market for global tech companies like Apple?
2. How would you feel if your favorite tech company experienced a decline in sales? Would it affect your loyalty to the brand?
3. Do you think economic uncertainty in a major market like China could significantly impact global tech companies? Why or why not?
4. What are some potential consequences of supply chain issues on consumers waiting for new tech products?
5. How do you think a company should address supply chain challenges to meet customer demand?
6. Do you believe that a company’s success in one product category (like iPhones for Apple) can compensate for weaker sales in others? Why or why not?
7. What is your opinion on CEOs making surprise visits to key markets during times of tension or uncertainty?
8. How important do you think it is for tech companies to diversify their product offerings?
9. Do you think increased revenue from services like iCloud and Apple Music is a sustainable way for companies to grow? Why or why not?
10. Have you ever experienced a situation where a product you wanted was delayed due to supply chain issues? How did that make you feel?
11. Do you think the surge in interest for tech products during the lockdown period will have a lasting impact on the industry?
12. What is your perspective on the role of foreign exchange rates in a company’s reported earnings?
13. Do you like the idea of companies relying heavily on a specific market for manufacturing? Why or why not?
14. How do you think US-China tensions might affect consumer choices and brand loyalty?
15. Do you think it’s important for tech companies to maintain a balance between innovation and addressing operational challenges? Why or why not?
Individual Activities
Vocabulary Meanings:
Match each word to its meaning.
Words:
1. Apple
2. decline
3. revenues
4. services
5. iPhone
6. supply
7. Mac
8. China
Meanings:
(a) A decrease in sales or performance
(b) The amount of goods available to be sold
(c) The country where Apple’s CEO made a surprise visit
(d) A type of computer produced by Apple
(e) The money a company receives from its activities
(f) The country where Apple’s sales declined by 2.5%
(g) A popular product from Apple
(h) Products or activities provided by a company
Go to answers ⇩
Multiple Choice Questions:
1. What was the percentage decrease in Apple’s revenues in the three months ending on 30 September compared to the same period last year?
(a) 5%
(b) 1%
(c) 10%
(d) 15%
2. What drove profits for Apple in the three months ending on 30 September?
(a) Record iPhone sales and increased revenue from services
(b) Decreased iPhone sales and Mac computer revenue
(c) Increased iPad sales and Apple Music revenue
(d) Declining iPhone sales and services revenue
3. What did Apple express concerns about in relation to its new iPhone 15 Pro and Pro Max devices?
(a) Potential supply chain issues affecting delivery
(b) Declining consumer interest
(c) Lack of new features
(d) High production costs
4. Which market experienced economic uncertainty impacting Apple’s sales?
(a) United States
(b) China
(c) Japan
(d) Germany
5. What did CEO Tim Cook emphasize during his surprise visit to China?
(a) The need for lower production costs
(b) The decline in iPhone sales
(c) The impact of US-China tensions on Apple’s operations
(d) The importance of the Chinese market to Apple
6. What has been a key manufacturing base for Apple?
(a) United States
(b) Japan
(c) China
(d) Germany
7. What has been a challenge for Apple’s operations in China?
(a) High consumer demand
(b) Low production costs
(c) Covid restrictions and US-China tensions
(d) Stable supply chain
8. What was the reported decline in sales of Mac computers for the quarter?
(a) 5%
(b) 10%
(c) 15%
(d) 2.5%
Go to answers ⇩
True or False Questions:
1. Despite the challenges, CEO Tim Cook expressed confidence in the company’s relationship with China, which serves as a key manufacturing base.
2. Sales of Mac computers dropped to $7.6 billion for the quarter, down from $11.6 billion the previous year.
3. Profits reached $23 billion, driven by declining iPhone sales and decreased revenue from services like iCloud and Apple Music.
4. Economic certainty in the Chinese market has boosted Apple’s sales, with a 2.5% increase reported.
5. The company reported a 1% decrease in revenues to $89.5 billion in the three months ending on 30 September compared to the same period last year.
6. Apple expressed concerns about potential supply chain issues affecting the delivery of its new iPhone 15 Pro and Pro Max devices.
7. Apple’s sales have experienced a rise, despite a decline in demand for its iPhones and services such as Apple TV+.
8. The sales of Mac computers and iPads flourished after a decline in interest following the lockdown period.
Go to answers ⇩
Write a Summary:
Write a summary of this news article in two sentences.
Writing Questions:
Answer the following questions. Write as much as you can for each answer.
1. What factors contributed to Apple’s 1% decrease in revenues in the recent quarter?
2. How did iPhone sales and services impact Apple’s profits in the face of declining overall sales?
3. Which Apple products have seen a decrease in sales, and what are the figures associated with this decline?
4. What are the specific challenges Apple is facing in the Chinese market, and how have these impacted sales?
5. How is Apple addressing the potential supply chain issues that could affect the delivery of its new iPhone 15 Pro and Pro Max devices?
Answers
Comprehension Question Answers:
1. By what percentage did Apple’s revenues decrease in the three months ending on 30 September compared to the same period last year?
Apple’s revenues decreased by 1%.
2. How many consecutive quarters has Apple experienced declining sales?
Apple has experienced declining sales for four consecutive quarters.
3. What was the profit Apple reached in the quarter, and what drove this profit?
Apple reached a profit of $23 billion, driven by record iPhone sales and increased revenue from services like iCloud and Apple Music.
4. What issues did Apple express concerns about regarding the delivery of its new iPhone models?
Apple expressed concerns about potential supply chain issues affecting the delivery of its new iPhone 15 Pro and Pro Max devices.
5. By how much did sales of Mac computers drop for the quarter compared to the previous year?
Sales of Mac computers dropped to $7.6 billion for the quarter, down from $11.6 billion the previous year.
6. What impact has economic uncertainty in the Chinese market had on Apple’s sales, and what was the reported decline?
Economic uncertainty in the Chinese market impacted Apple’s sales, with a reported decline of 2.5%.
7. How has Apple’s business in China shown year-on-year growth after accounting for foreign exchange rates?
After accounting for foreign exchange rates, Apple’s business in China showed year-on-year growth.
8. What was the purpose of CEO Tim Cook’s surprise visit to China last month?
CEO Tim Cook’s surprise visit to China last month was to emphasize the importance of the Chinese market to Apple and to express confidence in the company’s relationship with China.
Go back to questions ⇧
Listen and Fill in the Gaps Answers:
(1) sales
(2) experienced
(3) surge
(4) company
(5) investors
(6) challenges
(7) achieve
(8) balance
(9) strong
(10) instance
(11) dropped
(12) Chinese
(13) foreign
(14) rates
(15) confidence
(16) serves
Go back to questions ⇧
Vocabulary Meanings Answers:
1. Apple
Answer: (c) The country where Apple’s CEO made a surprise visit
2. decline
Answer: (a) A decrease in sales or performance
3. revenues
Answer: (e) The money a company receives from its activities
4. services
Answer: (h) Products or activities provided by a company
5. iPhone
Answer: (g) A popular product from Apple
6. supply
Answer: (b) The amount of goods available to be sold
7. Mac
Answer: (d) A type of computer produced by Apple
8. China
Answer: (f) The country where Apple’s sales declined by 2.5%
Go back to questions ⇧
Multiple Choice Answers:
1. What was the percentage decrease in Apple’s revenues in the three months ending on 30 September compared to the same period last year?
Answer: (b) 1%
2. What drove profits for Apple in the three months ending on 30 September?
Answer: (a) Record iPhone sales and increased revenue from services
3. What did Apple express concerns about in relation to its new iPhone 15 Pro and Pro Max devices?
Answer: (a) Potential supply chain issues affecting delivery
4. Which market experienced economic uncertainty impacting Apple’s sales?
Answer: (b) China
5. What did CEO Tim Cook emphasize during his surprise visit to China?
Answer: (d) The importance of the Chinese market to Apple
6. What has been a key manufacturing base for Apple?
Answer: (c) China
7. What has been a challenge for Apple’s operations in China?
Answer: (c) Covid restrictions and US-China tensions
8. What was the reported decline in sales of Mac computers for the quarter?
Answer: (d) 2.5%
Go back to questions ⇧
True or False Answers:
1. Despite the challenges, CEO Tim Cook expressed confidence in the company’s relationship with China, which serves as a key manufacturing base. (Answer: True)
2. Sales of Mac computers dropped to $7.6 billion for the quarter, down from $11.6 billion the previous year. (Answer: True)
3. Profits reached $23 billion, driven by declining iPhone sales and decreased revenue from services like iCloud and Apple Music. (Answer: False)
4. Economic certainty in the Chinese market has boosted Apple’s sales, with a 2.5% increase reported. (Answer: False)
5. The company reported a 1% decrease in revenues to $89.5 billion in the three months ending on 30 September compared to the same period last year. (Answer: True)
6. Apple expressed concerns about potential supply chain issues affecting the delivery of its new iPhone 15 Pro and Pro Max devices. (Answer: True)
7. Apple’s sales have experienced a rise, despite a decline in demand for its iPhones and services such as Apple TV+. (Answer: False)
8. The sales of Mac computers and iPads flourished after a decline in interest following the lockdown period. (Answer: False)
Go back to questions ⇧
