Growth in Apple’s income slows as iPhone sales drop by 12 percent

Brad Wilsonby:

Technology

Apple recently published its Q3 income and it showed a strong quarter in June, exceeding the expectations of analysts. The firm reported revenue of $53.8 billion and earnings of $2.19 per share. On the news, the company’s stock rose by 4%.  

The June quarter revenue by Apple reveals just how much the revenue growth has slowed down over the past couple of months. The $53.8 billion income in Q3 2019 just peaks above the $53.3 billion income in Q3 2018, rising just 1 percent.

Across different categories, the iPhone revenue faced a severe crunch, decreasing from $29.5 billion in Q3 last year to just $26 billion in the most recent quarter.

Despite the fall, Tim Cook, the CEO of the company stated that while the quarter earnings for iPhone category had dipped 12% as compared to last year’s June quarter, it still showed significant improvement signs to the 17% year-after-year decline in the second quarter. 

The year-after-year decrements in the sales of iPhone was compensated by the increasing revenue in all of the other categories of Apple, including a major hike in the sales of wearables, which crossed $5.5 billion in Q3. the other products of Apple consists of Home & other divisions and wearable which includes Beats, HomePod, Watch, AirPods, Apple TV and many dongles. 

For the past several quarters, the firm has not shared device figures, but concentrated exclusively on revenue, a symbol of both stagnant iPhone sales and the spike in the average selling price of the iPhone. 

For the last several quarters, Tim Cook and Co. have been telling a story about the boost in Services revenue. Services have not grown as much this quarter as analysts expected, but they have still reached $11.5 billion.

The firm saw small profits in a few of its geographic markets regionally, although it saw year-over-year decreases in profits from Greater China and Europe.

One of the largest news this quarter of the company appeared last week when the firm announced it was buying “most” of Intel’s modem business for $1 billion. This agreement is unlikely to have too many near-term impacts, though Apple has definitely been making serious decades-long attempt for the company to own more of its supply chain.

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