iPhone sales down 17% in second quarter
As hardware sales decline, Apple’s services division provides a boost
Apple has posted a decline in revenue and profit for a second successive quarter as iPhone sales continue to fall.
For its second fiscal quarter ended March 30, 2019, revenue was down 5% year-on-year to $58 billion (£44.3 billion), and net income declined 16% to $11.6 billion (£8.9 billion).
While most of its quarterly revenue came from iPhone sales, these fell 17% year-on-year to $31 billion (£23.7 billion).
Apple’s services division remained its second largest revenue generator in the quarter, with sales up 15% to $11.5 billion (£8.8 billion).
Mac revenues were down, but sales of iPad, wearables and home devices increased.
Commenting on the results, Apple CEO Tim Cook said: “Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for services, and the strong momentum of our wearables, home and accessories category, which set a new March quarter record.
“We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services. We’re looking forward to sharing more with developers and customers at Apple’s 30th annual Worldwide Developers Conference in June.”
Apple has reportedly committed to spending some $500 million on the first wave of titles for its upcoming game subscription service Apple Arcade.
Announced in March and set to launch this autumn, Apple Arcade will initially house over 100 “new and exclusive games” for iPhone, iPad, Mac and Apple TV.
