Apple announced their fiscal 2019 third quarter and Apple posted quarterly revenue of $53.8 billion, an increase of 1 percent from the year-ago quarter despite iPhone revenue, the company’s largest single product falling below 50% of the company’s overall revenue. This is the first time since 2012 that the iPhone represented under half of Apple’s revenue.
Apple stated that iPhone revenue came in at $25.99 billion for the quarter and that its services revenue was at $11.46 billion for the quarter. Apple credits growth in wearables and strong performance with the iPad for helping to make up the difference from the slowing sales of the iPhone. Apple’s wearables saw a big boost, likely thanks to Apple’s second-generation AirPods which released during the quarter.
Apple has been updating their Macs and iPads more frequently than in the past. They have raised the prices on them as well recently. Revenues from Mac sales was $5.82 billion, and iPads were $5.023 billion, up from $4.634 billion last year at this time. This could again be from raising prices and updating devices more frequently to help persuade new buyers.
Tim Cook said in the press release “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,” going on to say “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.”
Apple will be fine going into the next few quarters. They are rumored has a new 16-inch MacBook Pro in the works. They have the Apple credit card releasing very soon plus both Apple TV+ and Apple Arcade releasing in the fall. Apple’s services represented 19 percent of the company’s revenue last quarter I am sure it continues to go app as new services are rolled out later this summer and fall.