Apple's iPhone and iPad revenue dipped in the third quarter of fiscal year 2023, as the company faced challenges in China and other key markets.

The company's iPhone revenue fell 1.7% to $39.67 billion, while iPad revenue fell 20% to $5.79 billion. This was the first time in several years that iPhone revenue had declined.

Apple CEO Tim Cook attributed the decline in iPhone revenue to a number of factors, including the ongoing chip shortage, the war in Ukraine, and the slowdown in China's economy.

"We're facing some headwinds in some parts of the world," Cook said during a conference call with analysts. "But overall, we're very happy with the performance of the business."

Despite the decline in iPhone revenue, Apple's overall revenue in the third quarter was still up 9% to $94.8 billion. The company's services business, which includes Apple Music, iCloud, and Apple Pay, continued to grow, with revenue up 17% to $19.52 billion.

Apple's Mac business also performed well, with revenue up 16% to $10.43 billion. The company's wearables and accessories business also grew, with revenue up 11% to $9.28 billion.

Looking ahead, Apple expects the challenges in China and other key markets to continue in the fourth quarter. However, the company is confident that its long-term growth prospects remain strong.

"We're very excited about the future," Cook said. "We're investing heavily in new products and services, and we're confident that we'll continue to grow in the years to come."

Here are some of the key factors that contributed to the decline in iPhone and iPad revenue:

• The ongoing chip shortage: The chip shortage has been a major challenge for Apple and other tech companies in recent months. The shortage has made it difficult for Apple to get enough chips for its products, which has led to lower production and sales.
• The war in Ukraine: The war in Ukraine has also had a negative impact on Apple's business. The war has led to economic uncertainty in Europe, which has dampened demand for Apple products.
• The slowdown in China's economy: China's economy has been slowing in recent months, which has also hurt Apple's business. China is a major market for Apple, and the slowdown in the country has led to lower sales.

Despite the challenges, Apple remains confident in its long-term growth prospects. The company is investing heavily in new products and services, and it is confident that these investments will pay off in the years to come.