Apple second quarter 2019 results show record iPhone sales decline

iPhone XR
Image: IDGNS

Services and subscriptions drive continued growth

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1 May 2019 | 0

Apple on Tuesday announced its second quarter results for 2019, and it’s clear that the shift in it business model is in full swing. While Apple still posted revenue of $58 billion, iPhone sales were relatively flat, posting just $31 billion compared to $37.5 billion in the same 2018 quarter. Apple stopped breaking out unit sales last quarter, but it sold 52 million units in the same quarter last year.

Elsewhere, Apple is looking stronger than ever, particularly when it comes to services. Apple reported a record $11.5 billion tally for the category (which includes Apple Music, digital sales, and Apple Pay) versus $9.2 billion last year. It was the first time Services broke the $11 billion mark. Paid subscriptions were a major part of that, nearly topping 400 million for an increase of 30 million over last quarter.

Sales of iPads were also up, buoyed by the release of the fifth generation iPad mini and the new iPad Air. The iPad posted $4.9 billion in sales versus $4.1 billion in 2018’s second quarter. CEO Tim Cook noted that the “blockbuster” quarter represented Apple’s “strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services”. Mac sales were relatively flat at $5.5 billion as compared to $5.8 billion last year.

Wearables were another bright spot. Apple sold $5.1 billion worth of Apple Watches, AirPods, and other accessories in the quarter, a 30% increase over Q2 2018. Cook said Apple’s Wearables division is now about the size of a Fortune 200 company. Additionally, he noted that Apple’s installed base set a new record.

For the third quarter, Apple expects to post revenue between $52.5 billion and $54.5 billion, which could represent a return to growth. In the third quarter of 2018, Apple posted quarterly revenue of $53.3 billion. In after-hours trading, Apple’s stock spiked more than $10 on the news.

IDG News Service

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