Apple revenue goes up despite drop in iPhone sales, company's latest results show

Apple CEO Tim Cook
Bloomberg via Getty Images
Stephanie Cockroft31 July 2019

Service such as a straming and iCloud have contributed to increased revenue at Apple despite a drop in sales of iPhones.

The tech giant posted quarterly revenue of $53.8 billion (£44.3 billion) in the three months to June 29, an increase of 1 per cent from the same period in 2018.

The revenue figures beat Wall Street targets, while its forecast for fourth quarter sales also topped expectations.

Net profit fell from $11.5 billion (£9.5 billion) last year, to $10 billion (£8.3 billion).

iPhone sales have gone down, Apple said
Getty Images

But, while the iPhone remains the biggest category, the smartphone now represents only half of the firm's sales at $26 billion (£21.4 billion), down from $29.5 billion (£24.2 billion) the previous year.

Meanwhile, services - which includes the likes of Apple Music, iCloud and Apple Pay - along with the Mac, iPad, wearables and home and accessories all experienced growth.

Chief executive Tim Cook called the results "promising", highlighting the continued success of the services part of Apple, which took sales of $11.5 billion (£9.4 billion) - a new record.

The sector looks set to take a bigger chunk of Apple's growth in the future, with a new movie and TV streaming platform Apple TV+, the Apple Card, as well as a gaming subscription product Apple Arcade, all set to launch soon.

"This was our biggest June quarter ever - driven by all-time record revenue from services, accelerating growth from wearables, strong performance from iPad and Mac and significant improvement in iPhone trends," Mr Cook said.

"These results are promising across all our geographic segments, and we're confident about what's ahead. The balance of calendar 2019 will be an exciting period, with major launches on all of our platforms, new services and several new products."

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