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For the first time since 2012, iPhones account for less than half of Apple's business

By Kenny Yeo - on 31 Jul 2019, 9:13am

For the first time since 2012, iPhones account for less than half of Apple's business

Apple has just reported its third quarter 2019 earnings and for the first time since 2012, iPhones represented less than half of Apple's revenue.

To be specific, Apple generated US$53.8 billion in revenue in the third quarter of 2019. This is up 1% year-over-year, making it the company's biggest third quarter ever.

iPhone revenue was down 12% from US$29.47 billion a year ago to US$25.99 billion. However, this was made up for by significant increases by the other departments, namely Mac, iPad, Services, and Wearables.

Tim Cook proudly said that when the services and wearables are combined, they approach the size of a Fortune 50 company.

  • Mac revenue was up 11% to US$5.82 billion
  • iPad revenue was up 8% to US$5.02 billion
  • Services revenue was up 13% to US$11.45 billion
  • Wearables revenue was up 68% US$5.52 billion

Taken as a whole, this meant that iPhones accounted for 48% of Apple's total revenue in the past quarter. Services now accounts for over a fifth of Apple's business.

(Image source: Sixcolors)

That said, overall profit was down about 12.8% from US$11.51 billion to US$10.04 billion.

Despite this, on a whole, this is good news for Apple as the company seeks to diversify its business and reduce its reliance on the iPhone.

The phone business seems to have reached a peak and that hasn't been helped by the ongoing trade war between the U.S. and China.

Apple can look forward to a stronger performance from its Services sector when it launches Apple TV+ and Apple Arcade later this year.

Source: Apple, Sixcolors

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