Apple wearables are doing well despite the drop in iPhone sales


     The greater amount of Apple products on the market was more of hardware than software. These days, we see that Apple is investing a larger slice of the pie on Apple TV+ and the content within. In spite of the lower numbers of iPhones, the device still has its glory.

     Ignoring the rise of wearable devices would be an insufficient observation. In the third quarter of 2019, wearable Apple gadgets brought the company in $5.5 billion, compared to $3.7 billion in the first quarter. However, it is not surprising thanks to releasing of AirPods, and presentation of wireless charging functionality.

     Tim Cook, CEO of Apple said; “The wearables category is doing extremely well.” about current earnings. Also according to what Luca Maestri, the CFO says; with the income from Apple wearable devices only, the company would appear on Fortune 200 list.

     Whereas iPad revenue goes up by 8% and Mac earnings increase by 11%, services including Apple TV and Apple Music provided a 13-percent-rise due to great concentration.

     CEO Tim Cook, in a press conference, said; “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,” related to this year’s income. He also had a declaration which is saying “These results are promising across all our geographic segments, and we’re confident about what’s ahead. The balance of calendar 2019 will be an exciting period, with major launches on all of our platforms, new services and, several new products.”

     Even though the current revenue is satisfying for the tech giant, the third quarter in 2019 earnings dropped compared to the revenue of the third quarter the previous year. Q3 fiscal reports for 2019 demonstrates $25.9 billion while the same report for 2018 showed $29.5 billion. Hence the sales amount in China did not satisfy the expectations, regression in iPhone sales for the last few quarters cannot be neglected.

     This situation could be evaluated as the result of the slowdown which the country is facing in economic growth. In fairness, to save resources for national manufacturer Huawei, only a few of the producers in China have been able to catch the trend. The giant power of hardware productions raised the nation-wide sales by the help of confrontational pricing tactics and promoting the brand for patriotic purchases.

     Tim Cook reports that Apple has valid ground to be optimistic about what is going on with China. He says; “I’d like to provide some color on our performance in Greater China, where we saw significant improvement compared to the first half of fiscal 2019 and return to growth and constant currency,”. He also adds; “We experienced noticeably better year-over-year comparisons for our iPhone business there than we saw in the last two quarters. And we had a sequential improvement in the performance of every category.”

    Apple is expected to make announcements of releases for new phones this year. It could greatly impact the market if they come up with some innovative design/features. In spite of the fact that 5G technology is expected to be a key for the next few years, Apple is not supposed to present it until 2020.