APPLE RAKED IN A MERE, er, $84bn in first-quarter revenues as it confirmed that iPhone sales tanked over the holidays.
While we don't know exactly how many smartphones Apple managed to flog over the three-month period - the firm no longer breaks out sales for individual devices - Apple confirmed that iPhone revenues declined by 15 per cent during the quarter ending December 29.
On the company's earnings call on Tuesday, Tim Cook pinned its falling iPhone revenues on a lacklustre performance in Greater China and was keen to laud the iPhone XS, XS Max and XR as the "best" smartphones Apple has ever shipped, shrugging off the suggestion that the slump is to blame on rising iPhone prices.
However, in a follow-up interview with Reuters, he fessed that says certain countries experienced a more drastic iPhone price increase over time and suggested prices will be lowered in these areas.
"When you look at foreign currencies and then particularly those markets that weakened over the last year those price increases were obviously more," Cook said.
"And so as we've gotten into January and assessed the macroeconomic condition in some of those markets we've decided to go back to more commensurate with what our local prices were a year ago in hopes of helping the sales in those areas."
While iPhone sales tanked over the holidays, Apple's overall Q1 wasn't as bad as many had expected; the firm posted revenues of $84bn (down five per cent year-on-year) and net income of $20bn (down from $20.07bn in Q1 2018), topping analyst expectations.
However, this also marks the first decline for both revenue and profit in a holiday quarter that Apple has posted since the iPhone's introduction more than a decade ago.
Still, Mac revenues came in at $7.42bn (up from $6.82bn), iPad sales at $6.73bn (up from $5.76bn) and wearables and home devices raked in $7.31bn during the three-month period (up from $5.49bn).
Apple's Services business - which accounts for Apple Music, iCloud, app purchases, Apple Care and more - was the star of the show, though, with Q1 revenues of $10.9bn, up from $9.1bn in the year-ago quarter.
"Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That's a great testament to the satisfaction and loyalty of our customers, and it's driving our Services business to new records thanks to our large and fast-growing ecosystem," Cook quipped.
Looking ahead, Apple doesn't expect things to get much better in the coming months; it expects to see Q2 revenues of $55-59bn stand to be well short of last year's $61.1bn mark. µ
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