Apple’s second quartier financial results are in. Here is a few of my own observations.
- iPad sales are up 22% which shows that the iPad Pro are very appealing and selling well. Why? Because the recently relased iPad Air was too late in the quarter. Same thing for the iPad mini. I can’t wait for iOS 13, another trigger for expanded and strong sales. But growth is slowing.
- Services sales are up 16% and it seems to confirm Apple’s right with its strategy of expanding the offer. Expect some acceleration in this space as geographic expansion will trigger more revenues. Remember when Apple was expanding the iPhone distribution channels? Same thing is happening here.
- Wearables are becoming the next big thing for Apple after services. What this space for the next few years. We ain’t see nothing yet.
- iPhone sales are still declining (-30% Y-Y, ouch) but people are more willing to trade in their old phones to get the new one. This is encouraging from an environmental perspective. People are keeping their phone longer too. Huawei is also very successful which is hitting Apple’s bottom line.
- China is experiencing more than a soft slowdown. It hurts Apple a lot. More than they are willing to admit.
- The Mac is down 5%. No word about the MacBook keyboards and how it impacts the financial side of the business.
Don’t miss the following analysis and other articles:
- From Jason Snell for Six Colors: Apple second-quarter 2019 financial results.
- MacStores publishing comments from JOHN VOORHEES: Highlights from the Six Colors Transcription of Apple’s Q2 2019 Earnings Call.
- From Tidbits: iPhone Sales Kept Sinking in Apple Q2 2019.
- What analysts are saying from PED 3.0.