Apple today announced its earnings for the third quarter of 2019 to investors. Total revenue increased 1% year-on-year to $ 53.8 billion. Apple CEO Tim Cook described the report to investors as a "blowout quarter" for wearables. He cited strong demand for Apple Watch and AirPods and service growth as a counterweight to a slight decline in iPhone sales.
IPhone sales declined $ 26.5 billion year-on-year to $ 26 billion, and iPhones accounted for less than half of Apple's revenue. Cook attempted to streamline the response to the decline, saying, "While this is a 1
Net sales for the iPad were just over $ 5 billion, and the Mac earned $ 5.82 billion on the recently redesigned MacBook Air and MacBook Pro. Wearables totaled $ 5.52 billion, services $ 11.45 billion. Services grew 13% year-on-year, remaining Apple's largest positive business for another quarter. Apple claimed to have paid 420 million subscribers for its various services, said the services had grown across all regions of the company, and affirmed that it was on track to reach its goal of delivering service revenues by 2020 to double.
While Apple Music and iCloud did so During the conference call with investors not discussed in detail, Apple executives saw an increase in monthly users of the Apple TV app YOY by 50%. They also confirmed that Apple Pay now handles close to a billion transactions a month – twice as many as a year ago. In August, the company will introduce the Apple Card, which is expected to further increase Apple Pay usage.
Apple more or less made investors understand that this was a strong quarter, as the numbers undermined the claims of the experts that Apple will not be able to curb iPhone sales with wearables and services. The problem, however, is that the medium-term health of wearables and services depends on the success of the iPhone.
To undermine this argument, Cook said the active installation base for Apple devices is higher than ever this quarter. Asked, as the company declares, with the slowdown in its flagship hardware product revenue, Cook has focused both on customer loyalty (ie the fact that relatively few users are switching to competing platforms) and on aftermarket users, bought the iPhones second-hand than Apple. Cook said the company wanted to promote the aftermarket because it helped Apple deliver its services to customers it may not be able to match with its expensive first-time products.
Apple shares rose 4% after the call in over-the-counter trading. While the quarter-on-quarter presentation continued this quarter – the iPhone was down on service and wearables growth – expect much more interesting news in the next quarter. It will be the first to include revenue from the new iPhone models being released later this year, as well as the launch of two new services: Apple TV + and Apple Arcade.