APPLE HAS REPORTED its sharpest-ever decline in iPhone sales, yet still managed to beat expectations on strong Services and wearables revenues.
The firm on Tuesday announced revenues of $58bn for the fiscal second quarter, which while down 5 per cent from the year-ago quarter, topped analyst expectations of $57.4bn. Operating profit was also better than expected at $11.6bn, despite marking a 16 per cent year-on-year-drop.
These losses can largely be credited to Apple's smartphone biz. While we don't know exactly how many iPhones the firm managed to flog during the quarter - Apple no longer breaks out sales for individual devices - we do know that revenues from plummeted 17 per cent to $31.05bn. That marks the most dramatic drop in iPhone revenues yet, toppling the 15 per cent decline the firm reported in the first quarter.
Tim Cook remains typically optimistic though and told analysts that "things are getting a bit better", with sales showing signs of perking up in China.
"For iPhone, while our worldwide revenue was down 17 per cent from a year ago, declines were significantly smaller in the final weeks of the March quarter," he said, adding, "This is an encouraging trend. We like the direction we're headed with iPhone, and our goal now is to pick up the pace."
MacBook sales stuttered during the three-month period too, with Apple reporting a that it's desktop and laptop unit saw a 4.5 per cent revenue drop to $5.5bn.
It wasn't all bad news out of Apple's hardware biz, as the iPad saw surprise revenue growth of 22 per cent to $4.9bn, which Cook noted was the firm's "strongest iPad growth in six years".
Services, which includes the App Store and Apple Music, proved the star of the firm's Q2 financials, hitting an all-time high of $11.5bn in revenue. This likely will balloon going forward too, with Apple last month showing off a range of new services including Apple TV Plus, Apple News Plus and its Apple Arcade gaming service.
Appl's wearables, home and accessories business also saw revenue jump 30 per cent to $5.1bn, fuelled by a 50 per cent jump in sales of the Apple Watch and AirPods.
"Demand has been incredible. This is nothing less than a cultural phenomenon," Cook said of AirPod sales.
Looking forward, Apple expects to post fiscal third-quarter revenue of $52.5bn to $54.5bn, toppling analysts' forecasts of $51.9bn. µ
'Some of us like the misery'
That'll surely affect its credit score