Apple’s sales have gone down, even though many people are buying iPhones and using services like Apple TV+. In the three months ending on 30 September, the company made $89.5 billion, which is 1% less than last year. This is the fourth time in a row that sales have gone down. But, the company still made $23 billion in profits because of a lot of people buying iPhones and using services like iCloud and Apple Music.

Not as many people bought Mac computers and iPads after the lockdown. Apple is worried that there might be problems with getting the new iPhone 15 Pro and Pro Max to customers. Tim Cook, Apple’s CEO, told investors that the company is working hard to fix these problems and hopes to balance supply and demand soon.

Even though iPhones and services are doing well, other Apple products are not as popular. Sales of Mac computers went down to $7.6 billion, from $11.6 billion last year. The company’s sales in China also went down by 2.5%. But, when you take into account changes in foreign exchange rates, Apple’s business in China actually grew compared to last year.

Covid restrictions and tensions between the US and China have affected Apple’s business in China. Tim Cook went to China last month to show how important the Chinese market is to Apple. Even with the challenges, he is confident in Apple’s relationship with China, which is an important place for making its products.

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 work in pairs to summarize the article in their own words, focusing on the main points: Apple’s recent sales decrease, the success of the iPhone and services, the drop in Mac and iPad sales, the supply challenges with the iPhone 15 Pro, and Apple’s relationship with China. They should aim to present their summary in under two minutes to the rest of the class.

– Opinion Spectrum
Instructions: Create a line in the classroom representing a spectrum of opinions from “strongly agree” to “strongly disagree”. Read out statements related to the article such as “Apple will overcome its current sales challenges quickly” or “The decrease in Mac and iPad sales is a significant concern for Apple’s future”. Students physically place themselves along the line to indicate their opinion and discuss their reasoning with classmates nearby.

– Keyword Taboo
Instructions: Write down key terms from the article (e.g., sales, iPhones, Apple TV+, iCloud, Mac, iPad, China, supply chain, foreign exchange rates, Covid restrictions). Students play in teams. One student must describe the term to their team without using the word itself or five additional taboo words associated with it. For example, for “iCloud,” the taboo words could be “Apple,” “service,” “storage,” “online,” and “data”.

– Future Predictions
Instructions: In groups, students discuss and make predictions about the topics mentioned in the article. They might predict the future of Apple’s sales, the success of the iPhone 15 Pro, how Apple will solve its supply issues, or the company’s relationship with China in the coming years. Each group then shares their predictions with the class.

– Pros and Cons
Instructions: Divide the class into small groups. Assign each group to discuss the pros and cons of a specific aspect from the article, such as the increase in iPhone sales, the decrease in Mac and iPad sales, the impact of Covid restrictions on Apple’s business, or the tensions between the US and China. After a set amount of time, each group presents their pros and cons to the class, which can lead to a larger class discussion.

Comprehension Questions:

1. How much revenue did Apple generate in the three months ending on 30 September?
2. By what percentage did Apple’s sales decrease compared to last year?
3. How many times in a row have Apple’s sales decreased?
4. What Apple products have seen a decline in sales after the lockdown?
5. What potential issue is Apple facing with the distribution of the new iPhone 15 Pro and Pro Max?
6. What was the decrease in sales for Mac computers from last year to this year?
7. How did Apple’s sales perform in China, and what external factors have impacted it?
8. Why did Tim Cook visit China, and what is his outlook on Apple’s future there?
Go to answers ⇩

Listen and Fill in the Gaps:

Apple’s sales have gone down, even though many (1)______ are (2)______ iPhones and using services like Apple TV+. In the three (3)______ ending on 30 September, the company made $89.5 billion, which is 1% less than last year. This is the fourth time in a row that sales have gone down. But, the company still made $23 billion in (4)______ because of a lot of people buying (5)______ and using services like iCloud and (6)______ (7)______.

Not as many people bought Mac computers and iPads after the lockdown. Apple is worried that there might be problems with getting the new iPhone 15 Pro and Pro Max to customers. Tim Cook, Apple’s CEO, told investors that the (8)______ is working hard to fix these problems and hopes to balance supply and demand soon.

Even though iPhones and services are doing well, other Apple (9)______ are not as (10)______. Sales of Mac computers went down to $7.6 billion, from $11.6 billion last year. The company’s sales in China also went down by 2.5%. But, when you take into account (11)______ in foreign exchange (12)______, Apple’s business in China actually grew (13)______ to last year.

Covid restrictions and tensions between the US and China have affected Apple’s business in China. Tim Cook went to China last month to show how important the Chinese (14)______ is to Apple. Even with the (15)______, he is confident in Apple’s relationship with China, which is an important (16)______ for making its products.
Go to answers ⇩

Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. What is your favorite brand of smartphone, and why do you like it?
2. How would you feel if the product you wanted to buy was in short supply and hard to get?
3. Do you think it’s important for a company to make a lot of profit? Why or why not?
4. Have you ever used Apple TV+ or Apple Music? Do you like these services?
5. Why do you think people might be buying fewer Mac computers and iPads after the lockdown?
6. What do you think are the biggest challenges companies face when launching a new product?
7. In your opinion, how important is it for a CEO to address problems publicly, like Tim Cook did?
8. How do changes in the economy, like foreign exchange rates, affect your buying decisions?
9. Do you think it’s a good idea for companies to rely on manufacturing in other countries? Why or why not?
10. Have you ever experienced difficulties because of Covid restrictions? How did it affect your life?
11. What do you think about the relationship between big companies and governments? Is it important?
12. Do you think it’s important for a company to have a strong presence in international markets? Why?
13. Have you or someone you know ever had to wait a long time for a new tech product to become available? What was that like?
14. What is more important to you when choosing a tech product: brand reputation or product features? Why?
15. Do you think tensions between countries can impact your choices as a consumer? How so?

Individual Activities

Vocabulary Meanings:

Match each word to its meaning.

Words:
1. sales
2. iPhones
3. profits
4. lockdown
5. customers
6. investors
7. foreign exchange
8. tensions

Meanings:
(a) A period when people are not allowed to leave or enter a building or area
(b) The money a company earns after paying expenses
(c) The value of one country’s money compared to another’s
(d) People who buy things from a business
(e) A type of smartphone made by Apple
(f) People who give money to a company in the hope of getting more back
(g) The money a company makes from selling things
(h) Feelings of worry or nervousness between two groups
Go to answers ⇩

Multiple Choice Questions:

1. How much money did Apple make in the three months ending on 30 September?
(a) $100 billion
(b) $80 billion
(c) $89.5 billion
(d) $70 billion

2. What is the main reason for Apple’s decrease in sales?
(a) Problems with getting the new iPhone 15 Pro and Pro Max to customers
(b) Tensions between the US and China
(c) Not as many people bought Mac computers and iPads after the lockdown
(d) Decrease in demand for iPhones and services

3. What is Tim Cook, Apple’s CEO, worried about?
(a) Decrease in sales of Mac computers and iPads
(b) Problems with getting the new iPhone 15 Pro and Pro Max to customers
(c) Covid restrictions
(d) Tensions between the US and China

4. Which Apple product had a decrease in sales from $11.6 billion to $7.6 billion?
(a) iPhones
(b) iPads
(c) Apple TV+
(d) Mac computers

5. What affected Apple’s business in China?
(a) Covid restrictions and tensions between the US and China
(b) Decrease in demand for iPhones and services
(c) Problems with getting the new iPhone 15 Pro and Pro Max to customers
(d) Decrease in sales of Mac computers and iPads

6. What did Tim Cook do to show the importance of the Chinese market to Apple?
(a) He increased the prices of Apple products in China
(b) He decreased the prices of Apple products in China
(c) He stopped selling Apple products in China
(d) He went to China last month

7. What is Tim Cook confident in despite the challenges in China?
(a) The demand for iPhones and services
(b) Apple’s relationship with China
(c) The sales of Mac computers and iPads
(d) The tensions between the US and China

8. What is the main reason for Apple’s $23 billion in profits?
(a) A lot of people buying iPhones and using services like iCloud and Apple Music
(b) Increase in demand for Mac computers and iPads
(c) Successful business in China
(d) Decrease in foreign exchange rates

Go to answers ⇩

True or False Questions:

1. Sales of Mac computers went down from $11.6 billion to $7.6 billion compared to last year.
2. Despite the overall increase in sales, iPhones and services like iCloud and Apple Music are still doing well.
3. The lockdown caused a decrease in the sales of Mac computers and iPads.
4. Tim Cook, Apple’s CEO, is concerned about potential problems with supplying the new iPhone 15 Pro and Pro Max to customers.
5. Covid restrictions and US-China tensions have impacted Apple’s business in China.
6. Apple’s sales have increased by 1% in the last three months, but the company still made $23 billion in losses.
7. Apple’s sales in China increased by 2.5%, but when considering changes in foreign exchange rates, their business in China actually declined.
8. Tim Cook is not confident in Apple’s relationship with China, despite the challenges they are facing in the Chinese market.
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. How much did Apple make in the three months ending on September 30, and how does it compare to last year’s earnings?
2. What are the two Apple services mentioned in the article that are contributing to the company’s profits?
3. Why is Apple concerned about the delivery of the new iPhone 15 Pro and Pro Max?
4. What happened to sales of Mac computers and iPads after the lockdown, according to the article?
5. Despite the decline in sales, why is Tim Cook still confident about Apple’s relationship with China?

Answers

Comprehension Question Answers:

1. How much revenue did Apple generate in the three months ending on 30 September?
Apple made $89.5 billion in revenue during the three months ending on 30 September.

2. By what percentage did Apple’s sales decrease compared to last year?
Apple’s sales decreased by 1% compared to last year.

3. How many times in a row have Apple’s sales decreased?
This is the fourth consecutive time that Apple’s sales have decreased.

4. What Apple products have seen a decline in sales after the lockdown?
Sales of Mac computers and iPads have declined after the lockdown.

5. What potential issue is Apple facing with the distribution of the new iPhone 15 Pro and Pro Max?
Apple is concerned about possible difficulties in delivering the new iPhone 15 Pro and Pro Max to customers.

6. What was the decrease in sales for Mac computers from last year to this year?
Sales of Mac computers dropped from $11.6 billion last year to $7.6 billion this year.

7. How did Apple’s sales perform in China, and what external factors have impacted it?
Apple’s sales in China went down by 2.5%, but when accounting for foreign exchange rate changes, they actually grew. The Covid restrictions and tensions between the US and China have impacted Apple’s business there.

8. Why did Tim Cook visit China, and what is his outlook on Apple’s future there?
Tim Cook visited China to demonstrate the importance of the Chinese market to Apple. Despite the challenges, he remains confident in Apple’s relationship with China and its role as a key manufacturing location.
Go back to questions ⇧

Listen and Fill in the Gaps Answers:

(1) people
(2) buying
(3) months
(4) profits
(5) iPhones
(6) Apple
(7) Music
(8) company
(9) products
(10) popular
(11) changes
(12) rates
(13) compared
(14) market
(15) challenges
(16) place
Go back to questions ⇧

Vocabulary Meanings Answers:

1. sales
Answer: (g) The money a company makes from selling things

2. iPhones
Answer: (e) A type of smartphone made by Apple

3. profits
Answer: (b) The money a company earns after paying expenses

4. lockdown
Answer: (a) A period when people are not allowed to leave or enter a building or area

5. customers
Answer: (d) People who buy things from a business

6. investors
Answer: (f) People who give money to a company in the hope of getting more back

7. foreign exchange
Answer: (c) The value of one country’s money compared to another’s

8. tensions
Answer: (h) Feelings of worry or nervousness between two groups
Go back to questions ⇧

Multiple Choice Answers:

1. How much money did Apple make in the three months ending on 30 September?
Answer: (c) $89.5 billion

2. What is the main reason for Apple’s decrease in sales?
Answer: (c) Not as many people bought Mac computers and iPads after the lockdown

3. What is Tim Cook, Apple’s CEO, worried about?
Answer: (b) Problems with getting the new iPhone 15 Pro and Pro Max to customers

4. Which Apple product had a decrease in sales from $11.6 billion to $7.6 billion?
Answer: (d) Mac computers

5. What affected Apple’s business in China?
Answer: (a) Covid restrictions and tensions between the US and China

6. What did Tim Cook do to show the importance of the Chinese market to Apple?
Answer: (d) He went to China last month

7. What is Tim Cook confident in despite the challenges in China?
Answer: (b) Apple’s relationship with China

8. What is the main reason for Apple’s $23 billion in profits?
Answer: (a) A lot of people buying iPhones and using services like iCloud and Apple Music
Go back to questions ⇧

True or False Answers:

1. Sales of Mac computers went down from $11.6 billion to $7.6 billion compared to last year. (Answer: True)
2. Despite the overall increase in sales, iPhones and services like iCloud and Apple Music are still doing well. (Answer: False)
3. The lockdown caused a decrease in the sales of Mac computers and iPads. (Answer: True)
4. Tim Cook, Apple’s CEO, is concerned about potential problems with supplying the new iPhone 15 Pro and Pro Max to customers. (Answer: True)
5. Covid restrictions and US-China tensions have impacted Apple’s business in China. (Answer: True)
6. Apple’s sales have increased by 1% in the last three months, but the company still made $23 billion in losses. (Answer: False)
7. Apple’s sales in China increased by 2.5%, but when considering changes in foreign exchange rates, their business in China actually declined. (Answer: False)
8. Tim Cook is not confident in Apple’s relationship with China, despite the challenges they are facing in the Chinese market. (Answer: False)
Go back to questions ⇧