IPhone sales continue to fall sharply, according to Apple's earnings statement for the fiscal second quarter, despite its stock and services businesses are up today.
Apple's all-important iPhone revenue fell 17 percent in the quarter ended March 30, totaling $ 31.05 billion. A year ago, we saw iPhone revenues at $ 37.56 billion.
You can evaluate people's continued dislike of upgrading people to newer, more expensive iPhones. The iPhone XS Max is Apple's most expensive phone, the "economical" XR iPhone is still quite expensive, and the iPhone XS has not changed much from the iPhone X.
New rumors about the iPhone 11 point to a triple lens camera upgrade and the ability to charge other wireless devices (useful for the new AirPods 2019), but the Apple device is not expected to get an innovative redesign of the smartphone, contrary to your competition.
How is the cause of the iPhone bleeding
Apple noted that price declines in some countries helped see some recovery, so its declines were "significantly lower at the end of the quarter," according to CEO Tim Cook during Apple's earnings conference.
Unfortunately, Apple does not disclose more numbers than how many units the iPhone sells. Its Mac sales have dropped slightly (Apple blamed "processor restrictions on certain models"), while iPad sales have soared (Apple has highlighted the new iPad Air and iPad mini). The category of all-dressing, home and accessories company saw a beautiful bump.
Services are what Apple has most recently talked about, and today's earnings call was no different. They are $ 11.45 billion, at $ 9.85, which Apple announces as new records for Apple Music, App Store and Apple Pay.
The company has just released Apple News Plus, Apple TV Plus and Apple Arcade, which will be released in late 2019. They will join Apple Music to boost the new subscription-based revenue.
"The service account accounts for 20% of our March quarterly revenue and a third of its gross profit dollars," according to Luca Maestri, Apple's CFO, during Apple's profit conference.
Of course, Apple's iPhone revenue is still 2.8 times higher than the growing category of services and is becoming a risky business. Netflix has spent $ 15 billion on original content, HBO has names like Game of Thrones and Disney Plus. launches on November 12 with a back catalog of Disney, Marvel and Star Wars.