Fewer people are buying iPhones
They still drive the bulk of Apple's revenue, but last year's huge, record iPhone sales (creating an almost freakish quarter or two), are a lot to follow. Despite the decline on last year and the previous quarter, Apple minimised that decline, beating expectation on what's traditionally one of its slowest quarters – and that's a positive.
Beyond the iPhone
iPhone's share of the business declined while iPad and services grew compared to last year.
Here's what those sales look like in terms of revenue and units look like over the years.
And services, which include things like iTunes, Apple Pay, Apple Music, App store and more.
It's a bump on the same time last year (up 19 per cent), but it's remained largely flat in recent quarters since an increase at the start of the year. Has services saved it from an iPhone decline? Well, not quite yet, perhaps, but Tim Cook wants to get there – on a conference call discussing the results, he said Apple is expecting the services part of the company to be the size of a fortune 100 company.
Location, location, location
China contributed toward 27 per cent of Apple's revenue this time last year. That's fallen to a 21 per cent share as revenue declined 33 per cent. For a country with billions of people, growing in this huge market is a crucial goal for Apple – but it also faces greater competition from homegrown (and cheaper) rivals.
When down is good
Revenue declined by 14 per cent year-on-year and 16 per cent on the previous quarter.
A decline had been expected but, in fact, that decline was not as bad as had been anticipated by Wall Street – and shares in the company have rallied in after hours trading as a result, up nearly seven per cent and cracking the $100 per share mark.
After a surprisingly tumultuous (for Apple, anyway) few months, these numbers are a good result.