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Apple's Revenue Challenge: iPhone price cuts and services help stop sales decline



IPhone revenue continues to fall sharply, according to Apple's earnings statement for its second fiscal quarter, although stock and service business has increased today.

Apple's most important iPhone revenue dropped another 17% for the quarter ended March 30, reaching $ 31.05 billion. A year ago, we saw iPhone earnings of $ 37.56 billion.

You can establish constant people's aversion to newer and more expensive iPhone phones. The iPhone XS Max is Apple's most expensive phone at all, the budget & # 39; The iPhone XR is still quite expensive, and the iPhone XS hasn't changed much from the iPhone X.

The new iPhone 11 rumors point to a triple-lens camera upgrade and the ability to wirelessly charge other devices (suitable for the new AirPods 2019), but Apple's handset is not expected to get a breakthrough smartphone redesign, unlike the competition.

As it follows from the bloodshed iPhone

Apple noted that the fall in prices in some countries helped to see some recovery, so its decline was "significantly smaller over the quarter," said Tim Cook CEO during today's Apple phone call.

Sadly, Apple no longer releases numbers for how much iPhone it sells. Its sales on the Mac have seen a smaller decline (Apple blamed "limitations on processors on some models"), while iPad sales rose (Apple highlighted the new iPad Air and iPad mini). There was a nice shot in the category of smarts, houses and accessories.

Services are what Apple spoke last, and today's call for earnings was no different. It's up to $ 11.45 billion from $ 9.85 that Apple touts as breaking new records for Apple Music, App Store and Apple Pay.

The company has just launched Apple News Plus and the upcoming Apple TV Plus and Apple Arcade are coming later in 2019. They will join Apple Music to manage their new subscription revenues.

"The service represents 20% of our March quarter revenue and one third of its gross profit dollars," said Luca Maestri, Apple CFO, during a call to earn Apple.

Of course, Apple's iPhone sales are still 2.8 times larger than its growing service category and are becoming a dangerous business. Netflix has spent $ 15 billion on original content, HBO shows that it is the names of households like Game of Thrones, and Disney Plus launches November 12 with Disney, Marvel and Star Wars-packed back catalog.


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