06 May 2019
Apple has given its second quarter financial results and has posted quarterly revenue of $58 billion, which is down 5% from the Q2, 18. Analysts had given a prediction of $57.4 billion in overall revenue.
The Cupertino giant’s services division has hit an all-time high of $11.5 billion in revenue. The company’s services division has continued to grow due to 1.4 billion active devices. The company’s services division includes iTunes, iCloud, Apple Music, and other products which grew 16.2% to $11.4 billion. Apple has generated $8.18 per device in service fees in just three months.
iPhone sales have fallen in the quarter and the company has reported a drop in the revenue to $31.05 billion, which accounts for 53% of Apple’s revenue. Apple has also reported a dip in Mac sales, but its iPad, wearables/home/accessories, and services have seen growth in the quarter.
Apple’s Q2 revenue has seen an improvement after a bruising first quarter, where the company saw disappointing iPhone sales and had to revise its earnings guidance. iPhone sales had fallen 15% in Q1, 2019. Apple’s CEO Tim Cook had cited weak demand in Q1, as well as Apple’s temporarily discounted battery replacement program for the poor sales.
The company continues to face challenges in the Chinese market, where its market share has been eaten by domestic brands with their cheaper offerings. The company has also lost its market share in India as well. Apple has given a revenue prediction of $52.4 and $54.5 billion, with a gross margin of between 37% and 38% for the third quarter of 2019.
“We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services,” CEO Tim Cook stated. “We’re looking forward to sharing more with developers and customers at Apple’s 30th annual Worldwide Developers Conference in June.”
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