Apple has just reported its third-quarter tax revenue, and as we've come to expect from the world's most valuable business, it's been another excellent three months. Turnover and earnings per share rose (and analysts' expectations), and stocks have experienced a modest bounce as investors jump back into the hype move.
But at second glance, Apple's numbers tell an interesting story. IPhone sales were barely up on the year-ago quarter, and at 41.3 million units sold, the analyst's expectations of 41.79 million units were actually missed. Nobody seems to care, because the average selling price of the iPhone increased significantly (all thanks to the iPhone X), so that the money press continues to rattle as usual.
However, stagnant iPhone sales are increasingly becoming an increasingly common story. The smartphone market is saturated worldwide, and without major breakthroughs coming every year, people are clinging to devices for longer. In order to remain dominant at the top of the market, Apple must find another mechanism to bring its shareholders the profit they demand.
Fortunately, a long-underrated Apple division is in the foreground: Services. Tim Cook spent an unusually long time in the service area of Apple during the Q3 earnings call, and for good reason. Services revenue was $ 9.54 billion, an increase of 31
Even more impressive than the sales figures is the overall growth and Apple's place in the market. Cook said Apple Music grew 50% year-on-year, confirming earlier reports that Apple Music is now the largest streaming service in the US. Then there's Apple Pay: Cook said there were over a billion Apple Pay transactions in the third quarter of 2018, which Cook claimed were more than Square. In mobile transactions, Cook said there are more mobile Apple Pay transactions than mobile PayPal transactions, although it is not clear where Venmo (owned by PayPal) is located.
Either way, the picture is clear: Apple's services are growing faster than ever, and it will continue to do so. Cook said on the call that "we could not be more excited about the products and services in our pipeline," which sounds suspiciously like an allusion to a long-awaited Apple streaming TV service.