Apple Inc. (NASDAQ: AAPL) the stock rose over 4.6% on 31st July 2019 (As of 11:18 am GMT-4; Source: Google finance) as its “Services” division picked up the slack with 12.6% growth to $11.46 billion. Sales of Mac computers surged 11% to $5.82 billion on the wave of better access to core chips from Intel Corp. Wearables revenue jumped to $5.5 billion from $3.73 billion a year ago, the equivalent of a Fortune 200 company, has beaten the estimate of $4.8bn.
For the first time in nearly seven years, Apple’s flagship product accounted for less than half of its quarterly revenue, according to an earnings report released Tuesday. Third-quarter iPhone sales of $25.99 billion marked a sharp decrease from a year ago, when iPhone revenue totaled $29.47 billion. The smartphone accounted for 48% of Apple’s total revenue of $53.8 billion. Last year, it represented 63% of total revenue, and has been a strong majority of Apple sales since the end of 2012.
Meanwhile, China’s economic doldrums also hurt Apple, which counts on the country for about a fifth of its revenue. Sales in Greater China, which includes Hong Kong and Taiwan, sank 4% to $9.16 billion. The decline was a marked improvement from the prior two quarters, when revenue in China fell more than 20%.
Apple has reduced iPhone prices in China to be more competitive with lower-price handsets from rivals like Huawei Technologies Co. and Xiaomi Corp., but its share of the country’s smartphone market fell 0.6 percentage point to 5.8% during the June quarter, according to Canalys, a market research firm.
AAPL in the second quarter of FY 19 has reported the adjusted earnings per share of $2.18, beating the analysts’ estimates for the adjusted earnings per share of $2.10. The company had reported the adjusted revenue growth of 1 percent to $53.81 billion in the second quarter of FY 19, beating the analysts’ estimates for revenue of $53.31 billion.
Apple expects revenue in the current quarter to range between $61 billion and $64 billion, above consensus expectations. It returned $21 billion to shareholders during the quarter, including $17 billion in share repurchases. Apple expects full-year revenue in the range of $61 billion to $64 billion.
Apple Inc. (NASDAQ: AAPL) has fielded fewer questions earlier this month than its peers during a House Judiciary Committee hearing on the power of online platforms. Still, it faces lawsuits from customers and developers in the U.S. over its control of the App Store, which serves as the only software distribution system for the more than 900 million iPhones world-wide.