Apple’s financial results for Q3 2019 are in, and they’re just as we expected. The company continues to be profitable with a revenue of $53.8 billion, 1% higher YoY, and a net quarterly profit of $10.0 billion.
These results show a better than ever revenue figure for the June quarter, beating out last year’s June quarter just by an inch. Profit numerics, however, have dipped to lower margins this year.
iPhone Contributed Less than 50%
What’s most interesting in these results is that the company’s main products are actually lagging behind with flat growth, whereas new product lines are growing just fast enough to make up for the gap.
The iPhone has contributed to less than half of Apple’s total revenue, whereas business is booming in other divisions. There was a 17% increase in revenue for the quarter if you don’t count the iPhone – which is quite absurd, to say the least.
“This was our biggest June quarter ever — driven by all-time record revenue from Services, accelerating growth from Wearables, strong performance from iPad and Mac and significant improvement in iPhone trends,” said CEO Tim Cook.
Starting to Become a Cyclical Business
Looking closely at the results, Apple’s iPhone business is starting to look more like a cyclical business. iPhone sales only boom where major changes and innovation are brought in with new phones. The results continue to decline for the next three years until another major change is introduced.
And from the looks of it, it appears that this trend is going to persist for the foreseeable future.
Going forward, however, the company forecasts even better results for the fourth quarter. Revenue is expected to be somewhere between $61–64 billion and gross margin between 37.5 and 38.5 percent.
Source: MacRumors
RIP Apple User