Apple's quarterly earnings calls have fallen into a predictable pattern over the last year or two: iPhone revenue has been declining year on year, and Mac typically stagnates, but every other Apple business ̵
case again with Apple's Q4 2019 earnings report today; iPhones declined, but the company reported its highest revenue so far in September, thanks to good results from services such as the App Store, AppleCare + and Apple Pay, as well as strong sales of the iPad and Apple Watch. Total revenue was $ 64 billion.
Apple revealed during the process that the iPhone 11 (sans Pro) is now the best-selling phone and that iPhone revenue is $ 33 billion – a 9% drop from the same quarter of the previous fiscal year, though an improvement over the decrease from the 15% the company saw in the previous three quarters this year. (This improvement is probably due to the release of the iPhone 11 and its mostly mid-September, shortly before the end of the quarter.)
Mac sales were down 5%, but Apple CEO Tim Cook quickly made a call for investor profits that the company released a major update to the MacBook Air, one of its most popular computers, around this time last year, but has not yet done so this year, apparently explaining part of the downturn.
Apple is expected to upgrade some of its laptops in the coming months and plans to launch the precious Mac Pro immediately. Aimed at creative professionals, the Mac Pro price point makes it a smaller mass-market device than the MacBook Air.
Apple boasts an 18% increase in revenue from services, an improvement over the previous quarter, bringing fiscal year 2019 a total of $ 46 billion. He was $ 12.5 billion for this quarter alone. Among other things, it was credited for "continuous recording of payment service revenue" such as Apple Pay. The company hinted at recent launches of Apple Card, Apple News + and Apple Arcade, but did not provide individual numbers for them during the call. Apple also said today that it is the best quarter for AppleCare.
The iPad saw 17% growth driven by the iPad Pro, but the big positive story from the company was that of wearables that include the Apple Watch and AirPods. The company posted a 54% growth in this category, and the quarter ended before the announcement or release of AirPods Pro.
In response to a question about an investor, Cook informs him that he sees wear and tear as Watch and related health functionality as the future of the company. "In the future, we will look at one day and Apple's biggest contribution will be to human health," he said.
Some investors are understandably concerned that many of Apple's growth zones are dependent on the iPhone. Consumers stick to their existing iPhones and choose longer from upgrades than ever before, leading to a continuous slowdown in iPhone sales. But Apple's shares have grown slightly after the talk independently, indicating that the market at least believes that Apple still has enough room to grow services and carry in the near future before the slowing momentum of the iPhone becomes a serious problem.
And in some cases, the numbers confirm this: a significant portion of Apple's revenue (which is now tip to nose with the Mac) comes from customers who make the first purchase in this category. And Cook again made vague hints of major new products in the wearable category, which (not his words) could include augmented reality headphones.
Despite declining iPhone sales, Apple users probably should not be very concerned about the future of the ecosystem they have invested in. The company said earlier this year it has a base for installing 900 million iPhones globally. Whether this continues to grow is a concern for investors seeking high returns in their portfolios, but not for consumers; an installation base of this size, but guarantees constant maintenance, content and updates for many years.
Looking ahead to Q1 2020, Apple estimates revenue between $ 85.5 billion and $ 89.5 billion – Q1 is often a big quarter for the company, it brings holiday sales and much of its immediate revenue after launching after the new version of iPhone.