Apple makes less money from iPhones and more from wearables

Last quarter, Apple made less money with iPhones and more with wearables and accessories. This is evident from the company’s quarterly figures. Despite the outbreak of the corona virus, turnover grew compared to the same period last year.

Sales from iPhones fell by 6.7 percent compared to the same period a year earlier, according to the quarterly figures. In a statement, Apple says it expects sales from iPhones to decline further in the coming quarter, despite the fact that the iPhone SE has been well received, according to the company. “It seems that iPhone SE buyers are coming from people who wanted a smaller phone with the latest technology or coming from Android,” said CEO Tim Cook. The iPhone accounts for about half of Apple’s revenue.

While Apple expects shrinkage in the iPhone, the company thinks it will earn more from iPads and Macs in the coming quarter. This is probably due to the release of the new iPad Pro with Magic Keyboard and the new MacBook Air. Sales from iPads and Macs declined in recent months compared to previous years.

The biggest growth in recent months was the Wearables, Home and Accessories category, which includes the AirPods, HomePod and Apple Watch. That turnover increased by 23 percent to 6.3 billion euros. According to Apple, that turnover will decrease in the coming months. Service revenues also rose, but according to Apple two trends were visible: its own music and video services are not affected by the corona outbreak, but advertisements in the App Store and in Apple News are.

Apple’s revenue rose 1 percent to $58.3 billion. Operating income amounts to 12.8 billion euros, a decrease of approximately 4 percent compared to the same period a year earlier. Apple does not provide precise expectations about revenue in the current quarter, due to the great uncertainties due to the outbreak of the corona virus.