Apple saw a sharp decline in iPhone revenue during the quarter, denting the company’s main revenue stream. The segment saw a gross margin on its product business of 34.3 percent, lower than the 38 percent margin Apple reported for its overall business.
“Our customers are holding on to their older iPhones a bit longer than in the past. When you paired this with the macroeconomic factors particularly in emerging markets, it resulted in iPhone revenue that was down 15 percent from last year,” CEO Tim Cook said on the company’s earnings call.
Revenue for the company’s services segment — a catch-all category that includes Apple Pay, Apple Music and iCloud storage — topped $10.9 billion, though, marking a 19 percent year-over-year increase. Apple reported a gross margin in its services segment of 62.8 percent.
A growth rate of 19 percent for the category is at the low of recent trends. Apple grew services revenue year over year by 17 percent last quarter, and 18 percent in the year-ago quarter, but has seen growth rates as high as 34 percent within the last year and a half.
“We’re very happy not only with the growth but also the breadth of our services portfolio. Our revenue from services has grown from less than $8 billion in calendar [year] 2010 to over $41 billion in calendar [year] 2018,” Cook said.
from Update News Zone http://bit.ly/2SeDfeJ
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