Apple recently reported its earnings for Q4, 2019. A very interesting observation. Revenue from services and wearables is continuing to increase slowly but steadily, and moving towards providing the smartphone maker with the bulk of its revenue.

In it’s latest quarterly earning report, iPhone sales still made up the vast bulk of Apple’s revenue – over 50 percent –  however, wearables and services, two areas where the company has started doubling down of late, also made their presence felt.

While Apple has stopped reporting numbers for iPhone, Mac and iPad lines, some of the percentage estimates released by the company told us that iPhone sales were down a massive 9% y-o-y. Of course, the iPhone 11 sales had not quite kicked in by the time this report went to the table, so that could be a major factor. MacBook sales showed a similar decline with 5% reduction y-o-y.

On the other hand, revenue from services was up 18%, reaching a massive $12.5 Bn. This was reflected in the wearables department as well, which showed a massive 54% increase y-o-y, and brought in $6.5 Bn to the company’s coffers. Interestingly, while Mac and iPhone sales declined, iPad sales saw a resurgence with a 17% increase y-o-y, allowing Apple to rake in over $4.6 Bn.

All in all, Apple managed to beat analyst expectations and deliver earnings of $3.03 per share. This was around $.19 above analyst expectations. in revenue terms, this meant that Apple brought in $64 Bn vs analyst expectations of $62.99 Bn.

Meanwhile, it would make sense to expect a continuing increase in revenue from services and wearables. The company recently launched its AirPods Pro and is also doubling down on services with Apple TV+ expected to hit the public soon.

Interestingly, Apple’s stock prices did not exhibit much change despite what was arguably a good quarter for Apple. Of course, while Apple has stopped displaying sales numbers for iPhones and Macs, it can’t hide the fact that revenue from its main money-earner is decreasing. That could be the reason behind what is a passive response from Wall Street.

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