The business of multinational technology company-Apple has been put under test owing to the present weak sales of its iPhone.
The latest figures from the most recent quarter allege that the iPhone sales curbed to $33.4bn, which is almost 10% less year-on-year. Furthermore, the drop also followed another streak of declines which affected the firm’s profits in the quarter, slipping to 3% year-on-year to $13.7bn.
Since 2016, the firm’s profits and revenue dropped for an entire financial year, which were further weighed down by iPhone results.
By means of a presentation, the firm announced its earnings. The results made Apple’s CEO Tim Cook immediately clarify to investors that the decline in the iPhone sales were a result of quick popularity of the company’s latest phone model, iPhone 11.
“It’s early but the trends look very good,” Cook said. “We are bullish.”
In addition, Cook has also assured that the company’s other businesses were also healthy. These include the sale of wearables, watches and earphones which rose by 50% while services revenue, including Apple Pay and the app store climbed 18% year-on-year. This also raised the quarterly revenue to $64bn which rose by 2% year-on-year.
Recently, Apple has been working on making its business less reliant on its phone through means of its subscription services for television and news, along with other offerings. It is however alleged that iPhones still manage to make majority of sales.
In his statement, Cook spoke about iPhone’s optimism of iPhone 11’s appeal. He supported his views with the help of the bright forecast for the upcoming quarter. The company has anticipated a revenue growth in the quarter of as much as 6%, which is allegedly more that the analysts’ expectations.
In the Greater China region, Apple performance was appreciated by analysts and investors which accounted for 20% of its business, with sales declining to only 3%. Cook anticipates an additional growth in the region and expressed confidence that US and China could agree upon a contract which would further avoid tariffs.
Apple shares have gained almost 2% in the after-hours trades.