Apple has announced a small gain in sales in the third quarter of their financial year, but surprisingly, there is not much contribution from iPhone this time.
The reports have revealed that sales of the iPhone have been dropped. However, the company seems to be earning revenue through its other range of products such as music store and software services. Growth in the sales by 1% is also observed, which is approximately $53.8bn, while the net profit is dipped by 13% ($10bn).
Seems like the US-China trade war has negatively impacted the organization, as 22% of the sales were found to be fallen in the second quarter. The economic conflicts between both nations have affected the exchange rates, which made the iPhone expensive for the Chinese buyers.
Regardless of results, Apple shares have been seen flourishing at Wall Street. In fact, within a few hours of this news, the stocks were increased by 3.5% which left with a value per share to $216.10. Which is a good news for the shareholders.
But what has shocked this multi-billion tech enterprise is the decline in the sales of iPhone, like it happened when Steve Job was holding on to Apple’s leadership back in 2012. The tech guru gave his best to make the iPhone a cash cow. So seems like Tim has to take the pressure upon his shoulders, as the iPhone sales are representing even less than 50% of Apple’s total sales, whereas, last year the volume of business by iPhone was declined by $741 million.
However, the company appears to be positive about its overall sales in the upcoming finale of the financial year. The officials are predicting an increase in their business by $61bn to $64bn, but they are not expecting this expansion from the star device. The company is now more focused on other products, such as Apple Watch, AirPods, App Store, Apple Tv, Apple Music, Apple Pay, etc. In fact, new iPad models including the new 16-inch MacBook Pro is also expected to be released in the fall of 2019.