Apple services earn more money than ever



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In the past three months, Apple has raised $ 31 billion from iPhone sales, up from $ 37.6 billion this year in 2018. Not surprisingly, this has had a fairly significant impact global activity of Apple. better than ever, but this time, the company generated only $ 58 billion in revenue. That's a noticeable dip, but it was apparently still enough to appease Wall Street: Apple beat analysts' expectations in all areas, pushing the company's price to jump by nearly 5% (at the time of writing) for after hours transactions.

If hardware is important to Apple's bottom line, the company is well aware that its greatest growth opportunity lies elsewhere: services. Programs like iCloud and Apple Music are not new, but the company launched its News + subscriptions in March and aims to bring its Apple TV + and Apple Arcade services live this year. It will take a long time to see what impact will the series and exclusive games have on Apple's financial results, but for the moment, Apple's non-material business is surprisingly strong: Mr. Cook said in the past three months that the company's service package "a record of all time." In other words, Apple saw its service business reach 11.5 billion dollars this trimester.

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Let's put this figure in context: Mr. Cook did not rent the iPhone in the version released today, but he pointed out that the iPad had experienced a "record quarter," generating a business figure of 4.87 billion dollars. Mac sales fell slightly over the previous year to reach $ 5.51 billion. This increase was largely offset by a dramatic increase in sales of Apple handheld devices. (For those who hold the account, Cook said that growth in this segment was about 50%.) Besides iPhones, Apple solid three months of equipment sales. But. If you group all the revenue generated by Apple from its non-iPhone hardware, that number again comes short in relation to its service revenues.

And again, this does not include any new stuff that Apple is waiting behind the scenes – the only new service that Apple launched to the public last month was its News + at $ 9.99 / month, but like all those who have registered are entitled to one month free, none of this money has been retained for publication this quarter. The money from Apple's subscriptions should soon be fully eclipsing its non-iPhone hardware.

While Apple has some reasons to feel good during this quarter, there is at least one figure in this release that seems troubling: the Greater China business figure. Around the same time last year, Tim Cook told Apple he was "growing more than 20 percent in Greater China," a figure that absolutely contributed to the company's best March quarter. However, the situation in China has not been slow to worsen, resulting in an unprecedented update of investors on weak iPhone sales and the dramatic decline in sales of the iPhone. First quarter business – the last time winter 2000.

In Europe, Japan, the Asia-Pacific region and the Americas, Apple has more or less stable sales compared to last year. This is not the case in Greater China: the company has seen its turnover fall by 30% since 2018. Cook has said to the usual call profits that the relationship between Apple and China is improving and that he feels "positive" in the trajectory of society. That may be true, but Apple's days on China as a major growth engine seem to be over, if the company is seriously Fortunately, gains from services such as Apple TV + and News + will be enough to help it break through the trillion dollar barrier again.

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