THE Apple released its third quarter financial result: it had record sales of $ 64 billion, driven by sales of services and wearables like the Apple Watch and AirPods; however, revenue from iPhones has dropped yet again.
Billing with iPhones was $ 33.4 billion in the quarter, down 9% in one year. According to Strategy Analytics, Apple sold 3% fewer iPhone units globally in the third quarter, compared to the same period last year. AND according to Canalys, the company’s sales in China plunged 28%.
CEO Tim Cook says the iPhone 11 is currently the best-selling mobile phone by Apple, surpassing the 11 Pro models and predecessors. This is due, in part, to the price of $ 699.
Cook tells the Reuters that this price “is a factor in attracting more people to the market and giving people one more reason to update; and in China… we choose relevant prices locally, more similar to prices that were very successful before ”.
Apple shifts focus to wearables and services
Apple is gradually shifting its focus to wearables and services. You can see this in the financial result: revenue from services it grew to $ 12.5 billion, up 18% in one year. This includes the App Store, Apple Pay, Apple Card and subscriptions like Apple Music, iCloud and AppleCare +.
The category Wearables, Home and Accessories had even greater growth, jumping 54% to $ 6.52 billion. Cook says three quarters of people who bought an Apple Watch in the quarter never had one before – is a sign that the smartwatch can expand to more people. Billing does not take into account the new AirPods Pro, launched in October.
Sales of iPad reached US $ 4.66 billion, an increase of 17% in one year, driven by the iPad Pro. However, revenue from Macs fell 5%: the CEO says that this was because the company launched a new MacBook Air in the same period last year, but not now.
Apple had a slight drop in revenue from China, Japan and Europe, but this was offset by stronger performance in the Americas. Net income for the quarter was $ 13.7 billion, down 3% from the same period in 2018.