Apple has come with, expected decline in financial numbers for the second quarter of 2019. The company reported a quarterly sales revenue of $53.8 billion. Compared to last year’s Q3 revenue, which was $53.26 billion, Apple recorded an increase of 1% in this year’s third-quarter sales earnings. And that right there, was one of the few exceptional green ticks in the largely red financial report.
Luca Maestri, Apple’s CFO, said, “Our year-over-year business performance improved compared to the March quarter and drove strong operating cash flow of $11.6 billion.”
Apple experienced a decline in the sales of the iPhone which generated around $25.9 billion compared to Q3 2018’s $29.4 billion. A drop of 13% in sales of iPhones was reported. Also, there was a decline in the sales of Apple products in China and Europe. These numbers were along expected lines as US-China trade dispute continues to linger on. And looking at upcoming US elections, looks like situation could remain bleak in the months to come.
Sales were down 4% in China from $9.5 billion (Q3 ’18) to $9.1 billion (Q3 ’19). Yet, the results are fairly good considering the ongoing trade tension between the US and China. The company reported a net income of $10 billion which is less compared to last year’s quarterly income of $11.5 billion.
Despite that though, Apple was able to cover up the losses in the iPhone sales by wearables and subscription services segments. The company’s wearables business (which includes Apple Watch) is booming and it generated $5.5 billion in Q3 ’19 compared to last year’s sales of $3.7 billion. This segment also includes Apple home products and accessories like AirPods.
Additionally, the company noted an increase of 55% in subscription-based services. This segment generated net revenue of $11.5 billion and includes services like Apple Pay, Apple TV, Apple Music, and App Store. This increase is promising as Apple plans to launch its new subscription-based video streaming service – Apple TV Plus – next year. Apple TV Plus will be available through the Apple TV app and will feature only Apple original shows and movies. But the Apple TV app does offer video streaming from third-party services like HBO with an additional subscription charge.
“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,” said Tim Cook, Apple’s CEO in a press release.
Apple forecasts a net revenue between $61 billion and $64 billion for the fourth quarter of FY 2019.