Apple revenue rises slightly despite decline in iPhone sales

By admin On Jul 31, 2019

Spread the love

Less than half of Apple’s revenue came from iPhone sales in the quarter, the first since 2012. Earnings from smartphone sales declined, but growth in service revenues boosted total revenue from last year. .

Apple had revenue of $53.81 billion in the past three months, and iPhones accounted for $25.99 billion of that. This means that for the first time in seven years, revenues from smartphones are no longer responsible for more than half of the turnover.

Last year, Apple achieved $3.48 billion more revenue from iPhone sales in the comparable quarter. It is not clear whether Apple has delivered fewer iPhones or whether less expensive models have been sold. Apple no longer provides details on the number of smartphones sold.

Despite the decline in iPhone revenues, Apple’s sales were one percent higher than in the comparable quarter last year. This is partly due to the growth in turnover from services; in the past quarter it was $11.46 billion. A year earlier it was still 10.17 billion.

Revenues from sales of Mac computers and iPads also increased. Those product groups accounted for 5.82 and 5.02 billion dollars in sales. A year earlier it was 5.26 and 4.63 billion. The Wearables, Home and Accessories category fared even better. Revenue there was $5.53 billion, compared to $3.73 billion in the same three months last year.

Apple’s revenue from iPhone sales also fell in the previous quarter and revenue from services rose. The company has been undergoing a transformation for several years now. Hardware remains an important source of income, but services are playing an increasingly important role. That will probably become even more evident in the coming quarters, when Apple releases its streaming service Apple TV+ and game subscription Apple Arcade.

Apple closed the quarter with a profit of $10.04 billion. That is less than the $11.52 billion in profit recorded in the same period last year. Apple has incurred more costs this year, partly due to higher expenditure on research and development.