Apple sold $39.67 billion worth of iPhones during the fiscal third quarter of this year which covers the months of April through June. This result was 2.4% lower than the $40.67 billion in iPhone revenue collected by Apple over the same fiscal quarter last year. The number also failed to meet Wall Street estimates of $39.91 billion.
The Wearables, Home and Accessories segment, which includes popular devices such as AirPods and the Apple Watch, reported a small 2.5% increase in sales on an annual basis. For the just-completed quarter, the unit took in $8.28 billion. The company’s second-largest division, Services, had another strong quarter with revenue of $21.21 billion, an 8.2% hike over last year. The figure also topped the $20.76 billion in Services revenue expected by analysts.
Apple’s shares tanked in after-hours trading after the release of the report
Overall, Apple reported revenue of $81.80 billion for its fiscal third quarter which was down 1% on an annual basis but it still beat analysts’ forecast for $80.69 billion in gross. It was the third consecutive quarter of lower year-over-year revenue for the first time since 2016. Net income of $19.88 billion exceeded last year’s bottom line by 2.3%. Diluted earnings per share amounted to $1.26, a 5% rise over last year’s $1.20 per share and topped estimates of $1.19.
Luca Maestri, Apple’s CFO, said, “Our June quarter year-over-year business performance improved from the March quarter, and our installed base of active devices reached an all-time high in every geographic segment. During the quarter, we generated very strong operating cash flow of $26 billion, returned over $24 billion to our shareholders, and continued to invest in our long-term growth plans.” The increase in active devices bodes well for Apple’s Services unit over the next few years.
