Apple delivers stronger-than-expected revenue, profits

May 03, 2019, 00:59
Apple delivers stronger-than-expected revenue, profits

So how bad were the results at Apple?

As you might expect, that had a pretty significant effect on Apple's overall business: last year's March quarter was its best ever, but this time, the company only pulled in a total of $58 billion in revenue.

Apple's iPhone sales fell 17% in the first three months of the year as the company's flagship product continued to struggle.

Apple's revenue has appeared to drop year after year.

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Apple had a challenging first quarter, with iPhone shipments dropping by a "staggering" 30.2 percent from a year earlier to 36.4 million units, IDC reported. Another notable financial bump in the company's reporting came from services; Apple clocked $11.5 billion in sales from that category, a jump from last year's $9.9 billion. The situation is better than three months ago, he noted.

Apple delivered stronger-than-expected results Tuesday for the past quarter as gains in services helped offset slumping iPhone sales, sparking a rally in shares of the technology giant. That means that customers are more likely to buy new iPhones if they can get some money back by handing over their existing handsets or if they can choose a financing option that works for them.

Apple's shares ended 4.91% higher on Wednesday, valuing it at around $969 billion, based on shares outstanding as of April 22. By adding more subscription services such as Apple News+ and Apple TV+, the company is looking to take advantage of an installed base that is now numbered at 1.4 billion devices.

Talking about the Apple Accelerator in Bengaluru, Cook said the company is "very happy" with some of the things coming out of there. It has been making strides with Apple Music and recently launched its News+ subscription service for avid magazine readers.

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All of these new endeavors, along with Apple's existing services, represent a big part of the company's future. The company hopes that it can keep users in the Apple ecosystem by offering services that are similar to its hardware: easy-to-use, detail-orientated, and focused on privacy and security.

Those services include Apple TV+, which will attempt to compete with the likes of Netflix, Hulu and Amazon this fall with high-profile original programming from such heavy hitters as Steven Spielberg, Oprah and J.J. Abrams.

Right around the same time, Apple also is expected to launch a new video streaming service in the mold of Netflix, which has already amassed 149 million subscribers worldwide.

It seems that public interest has shifted away from iPhones, with Huawei and Samsung racing past Apple in the ranks for quarterly shipment sales.

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