Apple iPhone Sales Decline For Three Consecutive Quarters
Apple manages to grow its business even as iPhone sales decline 12%. IPhone sales continue to decline and, for the first time in years, no longer account for the majority of Apple’s overall revenue, CNN reported.
Apple said that iPhone sales for the quarter fell to about $26 billion in the three months ending in June, a decline of nearly 12% from the same period a year earlier.
After years of defying gravity, Apple’s core iPhone business has now seen sales decline for three consecutive quarters. The slowing demand for iPhones comes as customers hold onto their smartphones longer and Apple works to reverse a slowdown in China, once it’s most promising market, amid an ongoing trade war with the United States.
Apple reported sales in the China region fell 4% from the prior year, an improvement from a more than 20 percent decline than in the prior quarter.
However, Trumps says he won’t exempt Apple’s Mac Pro parts from China tariffs.
According to CNN, even with this decline, Apple managed to grow its overall revenue by a slight 1% from the prior year as the company finds more traction selling wearable devices and digital services, including Apple Pay and Apple Music.
The Services segment, as Apple calls it, hit nearly $11.5 billion in sales for the quarter. Apple’s Wearable, Home and Accessories segment, which includes products like Apple Watch and AirPods, topped $5 billion in quarterly revenue for the first time.
Apple’s iPhone sales accounted for just 48% of its overall revenue for the quarter, highlighting the broader shift underway at the company as it works to diversity its revenue streams.
Shares of Apple rose 4% in after-hours trading Tuesday following the earnings report, again according to CNN.