Apple's iPhone sales decline 17% over the previous year

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Apple (AAPL) Tuesday, his business turnover for the first three months of 2019 decreased by 5% over the previous year, reaching $ 58 billion, while he was struggling with stagnant demand of smartphones. IPhone sales for the period fell by 17% over the previous year.
For years, Apple's iPhone business seemed to defy gravity as the company managed to sell more devices and bill them gradually. But this story was broken early this year when the company warned investors that iPhone sales had suffered from the slowdown in China in the context of an ongoing trade war.

However, during a teleconference with analysts after the earnings report released Tuesday, CEO Tim Cook said the worst may have happened to the iPhone, Apple seeing signs of improvement in China. He cited "improved trade dialogue" between China and the United States and "a very positive response from our customers to the price measures we have taken in this market".

Apple has been facing fierce competition in China from competitors such as Huawei and Xiaomi, who are offering cheaper smartphones at a time when Apple is adopting four-digit price tag phones. Apple has recently reduced the price of some of its products, including iPhone XS and XR, by almost 6% in some cases.

Nevertheless, Apple still has a long way to go to restart growth in China, which was not so long considered one of its most promising markets. Apple has achieved a $ 10.2 billion business turnover in China for the first three months of the year, down 21% from the $ 13 billion recorded in the same period last year. 39, last year.

"While China remains weak, it seems that Apple has experienced widespread strength in the last weeks of the quarter on a rebound in demand for iPhone," said Daniel Ives, an analyst at Wedbush, in a note to investors on Tuesday.

Mr. Cook said that "November and December were the most difficult." Cook added, "Our goal is now to accelerate the pace."

In the last quarter, Apple offset some of the decline in its iPhone with continued growth in its digital services business. The service sector, which includes products such as Apple Pay, Apple Care and Apple Music, generated record sales of $ 11.5 billion in the quarter, an increase of 16% over the first quarter. 'last year. It is currently the second largest revenue engine of Apple, ahead of the Mac and iPad.

Apple is looking to further develop this segment: last month, it hosted a sensational press event filled with celebrities to unveil several new paid subscription services.

Growth in services has helped Apple's overall revenue to exceed Wall Street's muted expectations. Apple has also appeased investors by announcing its intention to buy back $ 75 billion of additional shares and increasing its dividend.

The Apple stock has risen 5% after normal trading hours after the announcement of the results.

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