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Apple’s Q2 Revenues Shows a Drop in iPhone Sales, Apple Services Being the Profit Maker

Apple has just released its quarterly revenue report, which clearly shows that the profits gained through the sales of its smartphone have lowered to an extent, as there has been a steady decrease in the sales of the iPhone in the recent times. But the company is not making much of the fuss about it as its quarterly profits also included the revenues from its other services.

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Image Source: theconversation.com

The company reported on Tuesday that though it sold $31 billion worth of iPhones in Q1 2019, in the Q2 2019, the share of the iPhone sales was only 53% of the total fiscal second quarter revenues. The lowered profits through iPhone sales have also lowered the total year-over-year revenue by 17.33%. Also, Apple’s laptop series including MacBook Pro and iMac had to see a decrease in their sales despite new updates and the last year’s 100 million Macs in use milestone.

But on the other hand with the new updates to Apple’s other hardware series, i.e. iPad, outshined in the tablet market, and its individual revenue was higher by 22% year-over-year. Also, the company is constantly providing new services to its installed base of 900 million active iPhones, which also added to the Q2 fiscal profits. The company CEO Tim Cook mentioned the services including iCloud and iTunes, which are becoming more popular and are contributing more to the revenues. Also, its other hardware lineups, especially its wearables, including the AirPods, Apple Watch and Beats headphones are having more demand among the users, resulting in more profits.

“Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for Services, and the strong momentum of our Wearables, Home and Accessories category, which set a new March quarter record. We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services. We’re looking forward to sharing more with developers and customers at Apple’s 30th annual Worldwide Developers Conference in June.” said Cook.

Apple has also got a share of its Q2 revenues from its streaming service, which is expected to gain more client base in the coming future. The wearables, other hardware and the streaming services, are the new sources of revenue for the company, which it had been neglecting in the past years. But still, the iPhone is going to be its main revenue generator in the coming years, too. Though iPhones have seen a decrease in its sales, its sales are expected to revamp as soon as the new 5G iPhone will arrive in 2020.