Apple Grows Services, Wearable Revenues As iPhone Decline Fails To Materialise


Apple sees rise in services, ‘other products’ and flat sales for iPhone and Mac, but iPad continues to fall

Apple has reported record quarterly revenues yet again, as a rumoured decline in iPhone sales failed to materialise and income from services and other products like the Apple Watch offset any problems elsewhere.

Some observers believed market saturation in developed markets and slowing demand in China, which had boosted recent figures considerably, would see the first ever fall in iPhone sales during the first quarter.

However 74.8 million units were sold, generating $51.64 billion for the company – an increase of one percent.

iPhone sales

iphoneThe iPad’s decline continued as sales fell from 24.4 million to 16.1 million over the past year and revenues slumped from $9 billion to $7 billion. Apple is banking on a push into the business market to help revive the tablet market it did so much to create. Mac sales also fell marginally from 5.52 million to 5.3 million, contributing revenues of $6.75 billion.

However revenues in services – which includes Apple Music, Apple Care, Apple Pay and licensing – rose by 26 percent to $6 billion, and ‘other products’, such as the Apple Watch, Beats headphones, accessories and the refreshed Apple TV, saw a huge 62 percent increase from $2.7 billion to $4.4 billion. Apple once again neglected to provide specific sales figures for the Apple Watch however.

Total revenues amounted to $75.8 billion, a year-on-year increase of two percent.

“Our team delivered Apple’s biggest quarter ever, thanks to the world’s most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV,” said Tim Cook, Apple CEO. “The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices.”

Speculation that the second quarter of Apple’s financial year will see a decrease in iPhone shipments will now intensify. Much attention will be paid to the anticipated release of the iPhone 7 later this year to see whether it will encourage existing iPhone users to upgrade their devices and Android device owners to jump ship.

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