The strong momentum of wearable equipment and services shows Apple’s forecast and right strategy to reduce dependence on iPhone.
Apple ‘s third quarter 2019 earnings report has just shown that business results exceeded analyst expectations with revenue growing again after two consecutive quarters of decline.
In this quarter, Apple earned $ 53.8 billion in revenue, up 1% from $ 53.3 billion in revenue during the same period last year. Meanwhile, this quarter’s profit reached 10 billion USD, down about 7% compared to the net profit of 11.5 billion USD in the same period last year. Even so, both numbers surpass expectations of Wall Street analysts.
Notably, this is the third highest revenue of Apple ever. Apple CEO Tim Cook said during the earnings report: “We are excited to announce that the momentum has returned this quarter, and this is the record revenue in Q3, the best that they will I have been up to now. ”
After the earnings report was released, Apple shares jumped 3.6%, bringing the company’s market capitalization to more than $ 960 billion.
However, the iPhone has yet to see its recovery when revenue was only $ 25.99 billion, down 12% from the $ 29.47 billion revenue of the same period last year. With this revenue, iPhone now accounts for only 48.3% of Apple’s total revenue. For the first time since 2012, iPhone has not contributed to góp of Apple’s total quarterly revenue.
But the iPhone’s decline has been offset by strong growth from Macs and wearable devices. CFO Apple, Luca Maestri, said the wearables department is “accelerating” with a growth rate of more than 50%.
Meanwhile, Mac revenue reached 5.82 billion USD and iPad reached 5.023 billion USD, an increase of 8% compared to 4,634 billion USD in the same period last year. Although total revenue of Apple products, including iPhone, iPad, Mac and other products only reached 42.4 billion USD, down 2% compared to the same period last year, but still higher than forecast 41, 7 billion USD of analysts.
The service sector brought the company 11.46 billion USD in revenue, up 12.6% compared to the same period last year, however, there was no contribution of important services introduced by Apple. this year, for example TV +.
Mr. Cook said: “Our services are expanding dramatically. We have a record high turnover for AppleCare, music, cloud services and revenue from the App Store, and they I have achieved a new record with the 3rd quarter revenue for the App Store. ”
Now the focus of analysts is set in Apple’s next quarter. This is the time when the company started selling this year’s new iPhone, and two new services were introduced at the beginning of the year Apple TV + and Apple Arcade. Another Apple service, the Apple-branded credit card, was released during this period.
With a series of new products and services launched in the next quarter, Apple is expected to reach between $ 61 billion and $ 64 billion, higher than Wall Street analysts’ estimates.