First-quarter iPhone sales down 17% as Apple flagship struggles
Apple iPhone sales fell 17% in the first three months of the year as the company’s flagship continued to struggle.
The tech company reported $31.05 billion (27.68 billion euros) in iPhone revenue for the quarter, the majority of the $58 billion in revenue Apple generated in the past few months. three months.
The news was less gloomy than expected and Apple shares soared 4% in after-hours trading as Apple announced it was buying back another $75 billion of its stock.
The company posted a profit of $11.6 billion, beating expectations. But this quarter marked another quarterly decline in profits and revenue as the company struggled to move beyond the iPhone.
In January, Apple reported its first decline in revenue and profit in more than a decade as slowing iPhone sales and an economic slowdown in China took their toll.
The results came after Chief Executive Tim Cook shocked investors by issuing Apple’s first earnings warning since 2002 citing “the extent of the economic deceleration, particularly in Greater China”.
The next generation
The company has stopped reporting unit sales of iPhones, leaving analysts to seek other sources of data for their estimates. Most don’t expect sales to pick up until the next generation of phones, using the super-fast 5G network, launches, likely in 2020.
In the meantime, Apple is repositioning itself as a services and software company, as well as a hardware manufacturer.
“Investors are slowly moving away from the iPhone cycle and valuing the company more based on the ecosystem of hardware, software and services, but it will take several years for that to become a consensus,” Gene said. Munster, managing partner of Loup Ventures, writes in a blog post this week.
Apple’s services segment, which includes products like Apple Pay, Apple Care and Apple Music, posted a record $11.5 billion after posting a record $10.9 billion last quarter.
Last month, Apple unveiled a host of new subscription services, Apple TV+, at a star-studded event attended by Oprah Winfrey, Steven Spielberg, Reese Witherspoon and Big Bird. He also announced Apple Card, a credit card backed by Goldman Sachs and MasterCard.
“Our March quarter results show the continued strength of our installed base of more than 1.4 billion active devices, as we set an all-time high for Services, and strong momentum in our wearables, home and accessories category. , which set a new March quarter record,” said Apple CEO Tim Cook.