Apple’s second fiscal quarter has been a tough one, according to the company’s quarterly figures. Although it exceeded analysts’ expectations, according to ZDNet this is mainly because those expectations were very low. The company saw iPhone sales decline, although the sales of its services increased.
Apple generated $31.1 billion in iPhone sales in the first three months of 2019. That is a 17% decrease compared to the previous year. The company has had worse quarters, but these have always followed exceptionally strong periods. Recently, however, iPhone sales have been consistently poor.
The general turnover also did not see any growth compared to a year earlier. It amounted to 58 billion dollars, 5 percent lower than a year earlier. Apple’s earnings per share were $2.46, 10 percent down from the same period in 2018. Wall Street had expected a profit of $2.36 per share with a turnover of $57.37 billion.
Apple had a relatively low turnover, but that was at a time when the company was still sure that the iPhone could improve on this. And as the quarterly figures show, that time is over. Moreover, there is less turnover in China, which is a trend that has been visible for several quarters. In the first two quarters of fiscal 2019, the company’s sales in China fell by 27 and 21 percent.
Yet there is still a ray of hope. Apple’s service revenues are growing. Indeed, this year’s turnover reached a record high of 11.45 billion dollars. Apple services include digital media and App Store sales. Moreover, the turnover from these services has been growing for a number of years. Four years ago, the turnover was only 5 billion dollars.
Wearables – which belong to the Home and Accessory Products category – also continue to grow. In a year’s time, turnover increased by more than a billion dollars. Furthermore, the iPad saw the strongest growth in the past six years.
For the next quarter, Apple expects sales to be $52.5 billion and $54.5 billion.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.