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Home / Business / Apple Watch, AirPods and Services are the big winners of Apple, not the iPhone

Apple Watch, AirPods and Services are the big winners of Apple, not the iPhone



  apple-iphone-11-1438

Apple turned its attention to the camera this year when advertising for the iPhone 11 and iPhone 11 Pro.


Angela Lang / CNET

Apple has a busy holiday season this year. Last month, the new $ 699 iPhone 11 and $ 999 iPhone 11 Pro were announced, the monthly subscription package Apple Arcade was launched and released on Friday the highly anticipated video service Apple TV Plus for $ 4.99 (19459014). In addition, Apple's new $ 249 AirPods Pro headphones were also announced this week, and there are plenty of new products from the Cupertino technology giant to choose from.

Now the question arises if anyone will buy them all.

So far, the characters are "mostly".

Apple announced Wednesday it would generate $ 64 billion in revenue in the three months to September 28, nearly 2% more than the same time last year. According to surveys by Thomson Reuters, they also exceeded the expectations of an average of 62.9 billion US dollars.

"We have completed a breakthrough fiscal year in 2019 with our highest Q4 revenue ever driven by accelerated growth in services, wearables and iPad." said Tim Cook, CEO of Apple, in a statement. He added that he is "very optimistic about what the Christmas quarter has in store".

That was enough to raise Apple's OTC trading shares by nearly 2% to $ 247.65 apiece. The company currently has a value of more than $ 1.1 trillion, making it one of the most valuable in the world. Much of Apple's shine during the quarter came from wearables such as the $ 399 Apple Watch and $ 159 AirPods as well as services such as the iCloud photo and document storage and the new Apple.

Arcade. The iPhone, on the other hand, did not fare that well.

iPhone mobile phone sales, which typically account for about half of Apple's revenue and much of its revenue, fell nearly 10% to around $ 33 billion. According to Apple, however, the interest of customers in the iPhone 11, which was released on September 20 (eight days before the end of the fiscal quarter), was high.

Cook was pleased despite the decline in sales with the performance of the iPhone. He noted that the decline in the first three quarters was less than 15%. "The significant increase in demand in the latter part of the quarter is reflected in the overwhelmingly positive feedback, customer feedback and response in the business for this new generation of devices, not to mention a wave of the best photos you have released." "I saw it from a smartphone," he said in a conference call with analysts after the release of the results. "We are optimistic."

Apple's optimistic news and commentary on the success of its non-iPhone customers highlight the company's recent efforts to lift itself out of the shadow of its popular device. Launched in 2007, the iPhone quickly became the engine of Apple's growth – helping to increase annual revenue from $ 24 billion to over $ 260 billion last year.

But as the iPhone sales growth has slowed . Apple has begun to look beyond the smartphone for its next phase of success.

In March, Cook publicized the company's bet on services. In a conspicuous press conference, Apple TV Plus, Apple Arcade and Apple News Plus were announced, which should be available on holidays, the case that it already succeeds. Apple said it had counted 450 million paid subscriptions to its services business, an increase of 36% over the previous year. And Apple said it was "well on the way" to reach its goal of exceeding 500 million subscribers by next year.

Cook noted, for example, that Apple's service business is now the size of a Fortune 70 company. And he believes that the Apple Card credit card that was made available in the summer was the most successful launch of a new credit card in the US ever. To arouse even more interest in the Apple Card, Cook will allow its customers to purchase a new iPhone for 0% within 24 months .

  Apple Airpods Pro

Apple unveiled the AirPods Pro, a premium version of its popular AirPods, this week.


Sarah Tew / CNET

Falling profits, rising sales

Apple is still trying to get the most out of its profits, as Apple is trying to achieve success outside of the iPhone. As a result, the decline in sales of the iPhone should also have led to an overall decline in profits for Apple. Total profit declined by approximately 3% year-on-year to $ 13.7 billion. This equates to $ 3.03 per share, ahead of analyst expectations of $ 2.84.

For the Christmas quarter, Apple expects sales between $ 85.5 and $ 89.5 billion, with the midpoint roughly equivalent to the analysts' average estimate of $ 86.9 billion.

An analyst, Toni Sacconaghi of Bernstein, asked why holiday estimates are not higher given Cook's positive comments.

Apple noted that significant changes have been made to new iPad Pros and MacBook Air laptops during the holidays last year's interest in these products. This and the volatility on the financial markets kept Apple's excitement in check.

Another analyst inquired about the trading tariffs of President Donald Trump with China, which threatened to damage Apple and other technology companies that developed devices. However, the United States gathered overseas.

Cook said Apple is already paying some duties, but in general he's less worried about it.

"The tone has changed considerably, I believe," he said, probably referring to trade talks between the US and China. "And I've long thought it would be in the best interests of both countries to reach an agreement that might not solve everything at first, but solve some of the things that each party wants and lead to a better place than we are . "

" I am confident that we will make our way there, "he added.





  http://www.cnet.com/


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