IPhone sales fell by 15%

Apple announced the results of the first quarter of the 2019 financial year (ends on December 29, 2018). As Tim Cook warned, they were disappointing. The corporation did not achieve its own revenue, and the reason was the low sales of the iPhone.

• Quarterly revenue amounted to $ 84.3 billion - by 5% less than a year earlier.
• IPhone sales revenue fell by 15% a year by the year.
• The revenue from other products and services increased by 19%.
• The segment of home equipment and accessories (+33%) grew better than the rest. In second place in terms of growth rate services (+19%), the third line belongs to the iPad tablets (+17%). The revenue from the sale of MAC computers and wearable devices grew by only 9%.
• The company's sales decreased in Europe ($ 20.4 billion instead of $ 21 billion a year earlier), Japan (from $ 7.2 billion to $ 6.9 billion), but most in China. There, the sales volume decreased by 27% and amounted to $ 13.2 billion. At the same time, a year earlier the corporation sold $ 18 billion goods and services in China.
• The cost of Apple shares by the time of publication of the report fell by 1%, the market value of the company approached $ 730 billion. After reporting, the Apple is growing rapidly at the last auction - at 1:30 Moscow time the company's shares were added 6.17%.

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Read also Apple responded to Trump's claims by a labor market review

Context. Poor financial indicators were known in advance. On January 2, the head of Apple Tim Cook published an open letter to investors.

• He explained the poor indicators with a slowdown in the Chinese economy, as well as the trade conflict of China and the USA.
• The fall of sales of smartphones Cook explained by the shift of the schedule for the output of new iPhone models to the market.
• A few days later, Donald Trump reproached Cook for not transferring the production of iPhone from China to the United States.
• The day before the announcement of disappointing results, the company published a review of its role in the labor market, emphasizing that in 2018 it invested $ 60 billion in the US economy, providing work of about 450 thousand Americans from 9,000 contracting companies. In addition, the company published several more press releases about its achievements in different directions.

Alexander Ambzin