IPhone sales go down, but Apple remains optimistic

With the decline in iPhone sales, Apple is betting on new services.

Angela Lang / CNET

Apple harbors a lot of optimism for your next iPhone and the services that run on the new cell phones. But concerns remain about how these new services can compensate for the low demand for the device that generates more revenue for the company. And is that the sales of its flagship device, the iPhone, have continued to fall in the quarter that ended in June.

Apple no longer shares the number of phone units sold every quarter, but the company said Tuesday, July 30, that iPhone sales fell 12 percent to $ 26 billion in its third fiscal quarter. The highest income from services combined with higher sales of the iPad and wearables They helped Apple score a victory in its third quarter revenue. Your sales and earnings figures are better than expected.

Apple's chief executive, Tim Cook, said this period has been the largest quarter ended in June in Apple's history. Resalt "record service revenue, accelerated growth of wearables, strong performance of the iPad and Mac and a significant improvement in iPhone trends. "Apple had revenues of US $ 53,809 million in the period, compared to US $ 53,265 million in the same period last year.

Overall, Apple reported Tuesday, July 30, earnings of US $ 10 billion this quarter, less than the US $ 11.5 billion reported in the same period last year.

Apple projected that in its fourth fiscal quarter it will have revenues of US $ 61,000 million to US $ 64,000 million, which is an optimistic projection compared to Wall Street expectations. Analysts expect Apple's revenue for the quarter ending September to total about $ 61.020 million, according to Thomson Reuters.

"What remains of the 2019 calendar is an exciting period, with great releases on all our platforms, new services and several new products," Cook said in a statement.

Apple shares rose 2.9 percent to result in US $ 214.90 in negotiations after the stock market closed.

Although Apple has been diversifying its operations towards new services and products, the iPhone is still its largest revenue generator. In the results of its fourth fiscal quarter, which ends in September, the first weeks of sales of the new iPhone of 2019 will be included quite possibly. Apple is expected to launch three new models of its flagship cell phone in September, one of which will have Three rear cameras. The new devices will maintain the base design of the iPhone X of 2017 Y iPhone XS and XS Max from last year.

Consumers are staying longer with their phones; In the United States, consumers now update their phones every three years instead of every two years. The biggest challenge facing the cell phone industry this year, which is the 5G connection, will not reach the iPhone until the 2020 model. The expected changes in the 2019 iPhone may not be enough to convince consumers of buying a new device.

"This is the first time since 2013 that the iPhone does not represent the majority of Apple's revenue in a quarter," said eMarketer analyst Yoram Wurmser. "With the decline in iPhone sales, Apple is trying to generate more money from people who already have an iPhone by promoting their new services."

Apple considers services as its next great opportunity. This item, which includes the Apple Store and Apple Music, has skyrocketed thanks to more than 1.4 billion Apple devices in the hands of consumers. In March, Apple held its first service-focused event in which it presented Apple TV Plus, your new streaming service Of video. Apple has also presented its service gaming called Apple Arcade. He even has plans to offer his own credit card, the Apple Card next to launch.

On the other hand, the division of wearables, accessories and Apple's smart home generated $ 5.5 billion in the third quarter, mostly powered by the sale of the AirPods, Cook said.

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With the collaboration of Suan Pineda.