Apple's quarterly report for the third fiscal quarter of 2019 illustrates the company's transformation. For the first time since 2012, the iPhone is responsible for less than half of sales. On the iPhone, Apple had to accept a significant decline. Strong are, however, services, wearables, the Mac and the iPad.
The iPhone is still Apple's strongest product group, with sales of $ 25.986 billion. However, this number alone is not very meaningful for the current situation of the company, because in fact, the sales of smartphones in comparison to last year slumped by 13.41 percent and only responsible for 48.29 percent of Apple's total revenue. Last year, the revenue share was 55.33 percent, at the peak time in 2015, it was 63.24 percent in the same period. The boom of the iPhone seems to be broken. For other products, however, the iPhone remains an integral part of the whole. Because without iPhone no Apple Watch and significantly less Apple Pay and App Store.
Wearables division grows by 48 percent
Other businesses have grown in importance over the last few years, most notably the services that include services such as Apple Music, the App Store, and iTunes. Here is Apple's revenue of 11.455 billion US dollars 12.64 percent before the third quarter of 2018. The Mac also provides with 5.82 billion US dollars for a revenue increase of 10.69 percent. The same applies to the iPad, which has gained 8.39 percent. The figures for the Apple Watch are still not reported separately, but the division for wearables, home and accessories has grown from $ 3.733 billion to $ 5.525 billion – a whopping 48 percent.
Apple spends more on research and development
Overall, the third fiscal quarter of 2019 is again a record quarter for Apple. Revenues at $ 53.809 billion are higher than ever before during this period. Nonetheless, Apple's net income declined 12.8 percent to $ 10.044 billion year-on-year. However, the reason for this is not to be found in the gross margin, which is only marginally lower at 37.59 percent compared to 38.34 percent. However, Apple's operating expenses have increased by more than $ 800 million, including over $ 500 million in research and development. According to CEO Tim Cook, several new products will be presented this year. In addition to new iPhones a larger MacBook Pro is expected.
Apple expects stagnation in the fourth quarter
For the fourth quarter of 2019 Apple expects sales of between 61 and 64 billion US dollars, and thus a stagnation compared to the previous year, when sales amounted to 62.9 billion US dollars. The gross margin is estimated at 37.5 to 38.5 percent, operating expenses are again high at 8.7 to 8.8 billion US dollars.