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Apple Q1 earnings reveal declining iPhone sales as services revenue increases

Apple revealed that revenues from its software services was at “an all-time high” at $10.9 billion.

  • Published: January 30, 2019 9:02 AM IST
Tim Cook Apple CEO

Apple has just posted the financial results for the first fiscal quarter of 2019, which reveals a number of important things about the company. According to the findings, the company posted an overall decline of about 5 percent in terms of the revenue it earned as compared to the first quarter of 2018. Apple also stated that it registered a 15 percent decline in iPhone sales in terms of revenue as compared to last year. The saving grace for the company was its software services segment along with other hardware products, which registered a growth of 19 percent.

Taking a look at the numbers, the quarterly revenue was $84.3 billion, where the revenue from software services as at “an all-time high” at $10.9 billion. Revenue from other products including Mac and wearables segments grew by 9 percent and the home-related devices and accessories posted a 33 percent increase in revenue. The report also noted that the iPad hardware segment posted a 17 percent growth. As part of the results, Tim Cook issued a statement adding, “it was disappointing to miss” the revenue estimates that the company had set for the quarter. Cook went on to add that the results do indicate that the strength of the business “runs deep and wide.”

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Cook also admitted that the increased prices for the 2018 iPhone lineup were responsible for declined iPhone sales according to a report by 9to5Mac. The company revealed some milestones including the total active install base for Apple products crossing the 1.4 billion mark. This is an increase from the 1.3 billion devices that the company revealed back in January 2018. This means that the company increased the install base of its products by about 900 million in about a year according to a report by TechCrunch.

Cook further stated that the increase in install base was responsible for increased revenue in software services. In addition to this, Apple CFO Maestri also hinted at the upcoming and long-rumored media streaming service as part of “future services” that “Apple whats to launch” to double its services revenue by the year 2020.

  • Published Date: January 30, 2019 9:02 AM IST