Apple presented the financial results for the second quarter of 2019 (third fiscal quarter of 2019 for the company). In general terms they remained in line with what analysts had predicted, but the surprise came in a considerable increase for the wearables section, while Revenue from iPhone sales continues to fall.
The income of the iPhone went from 29,470 million dollars during the same period last year to 25,990 million dollars for this last quarter. That is to say, one every year of 12%, although it slightly improves the 17% of the previous quarter.
The interesting thing here is that for the first time since 2012, the iPhone accounts for less than half of Apple's revenue.
The future is in the services and (maybe) in the wearables
Apple reported revenues of 53.8 billion dollars during the last quarter, and all sections grew from the previous quarter, with the exception of the iPhone. This allowed the company to exceed in barely 1% Revenue for the same period of the previous year.
The year-on-year decline in iPhone sales was offset by a boost in the rest of the categories, where wearables exceeded $ 5.5 billion, a significant growth for this section of 48% compared to the previous year. This division includes Apple Watch, HomePod, Apple TV, Beat products and AirPods. It is estimated that the latter and their new generation were responsible for these figures.
On the other hand, for this last quarter the services category did not grow as much as in previous quarters, but s increase compared to the previous year by almost 13% to report an income of 11,455 million dollars. To this is added the growth of 8% for iPad, with 5,023 million dollars, and 11% for Mac, with 5,820 million dollars, which helped compensate for each one of the iPhone.
With all this, Now the iPhone is below 50% of the company's total revenue, which can be good because you no longer have to rely on a single device, something that caused several headaches and losses in previous quarters. Although for the iPhone as a device it is not a good thing, so Apple will have to plan a new strategy if it does not want sales of its smartphone to continue falling.
According to analysts, iPhone sales have stagnated due to market conditions, where the economic slowdown in China is included, and that users now retain their phones for a longer time. There is also the fact that we are talking about a device of more than 1,000 dollars, which is causing change cycles go from 2 to 3 years In some regions of the world.
That is to say, Apple's diversification strategy is working, and the next quarter will be interesting to know how the company behaves after the first sales of the 2019 line of the iPhone and the launch of its new Apple TV + and Apple Arcade services. For this reason, Apple estimates revenues of between 61,000 and 64,000 million dollars.
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