Apple announces $33.4 billion in iPhone sales for Q4 2019, a 9 percent decline from the previous year
- The tech giant’s biggest product declines for second year in a row
- In spite of iPhone declines, Apple had best Q4 revenue in company history
- Apple says growth is now being driven by its wearables and services division
Apple’s iPhone sales slump has continued through the launch of its most recent models, the iPhone 11 and 11 Pro.
On an earnings call today announcing, Apple announced iPhone revenue for fiscal Q4 2019 had been $33.4 billion, a nine percent decline on sales for Q4 2018.
Looking for the silver lining, CEO Tim Cook, noted it was less of a decline than the fifteen percent drop between Q4 2017 and Q4 2018.
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FILE – In this June 3, 2019, file photo Apple CEO Tim Cook, left, and chief design officer Jonathan Ive look at a Mac Pro in the display room at the Apple Worldwide Developers Conference in San Jose, Calif. Apple Inc. reports financial earns on Wednesday, Oct. 30. (AP Photo/Jeff Chiu, File)
In spite of cooling iPhone sales, Apple reported record high $64 billion revenue for the quarter.
The gains came in spite currency drag from the fallout of Donald Trump’s trade war with China, which Cook estimated cost the company an addition $1 billion.
Apple attributed its success to 50 percent revenue growth in its wearables business, which include Apple Watch, AirPods, and the Beats line of headphones.
FILE – This July 24, 2019, file photo shows an Apple Store in Chicago is seen. Apple Inc. reports financial earns on Wednesday, Oct. 30. (AP Photo/Amr Alfiky, File)
Apple says its wearables business is now roughly the same size as its Mac business.
Another key growth driver was the company’s emerging Services business, which encompasses the App Store, iCloud, Apple Music, Apple Arcade, Apple TV+, Apple Pay, and Apple Card, a new custom credit card announced in March.
APPLE Q4 2019 EARNINGS AT A GLANCE
Apple earned $64 billion in overall revenue for the quarter.
iPhone sales accounted for $33.4 billion, a nine percent decline year over year.
Key growth came from Apple’s wearables business, including Apple Watch, AirPods, and Beats.
Apple’s wearables produce roughly the same revenue as its Mac products.
There were more than three billion transactions over Apple Pay in the quarter.
Apple also announced a new program where users will be able to sign up for an Apple Card and use it to buy a new iPhone, with 24 months to pay it off with no interest.
The company says it now has $260 billion in cash, more than two and a half times the GDP of Puerto Rico.
After a number of adjustments, the company has $108 billion in debt.
CFO Luca Maestri says Apple will continue to work toward a cash neutral position in the future.