Apple in its second quarter financial results posted quarterly revenue of $58 billion, a five per cent decline from the year-ago quarter, and quarterly earnings per diluted share of $2.46, down 10 per cent. International sales accounted for 61 per cent of the quarter’s revenue. iPhone revenue came in at $31.05 billion, still down but makes up for 53 per cent of Apple’s entire revenue.
Apple services revenue hit a record high of $11.5 billion. And while Mac sales were down, the iPad, wearables/home/accessories and services units of Apple’s business all witnessed gains.
The Q2 earnings came as an improvement over the first quarter results, when CEO Tim Cook revised its revenue guidance in a press statement. The iPhone sales declined 15 per cent over the previous year. Despite getting hit by bad news in January, the company’s stock rebounded and added almost $300 billion in market value.
However, Apple still faces tough challenges in China where other Chinese OEM’s including Huawei, OnePlus whose smartphones cost less than iPhones. Despite trade tensions, Apple has reported sales of $10.2 billion in China for the second quarter.
The earnings report comes just weeks after Apple has launched new models of AirPods, iPad Air, iPad mini and the iMac desktop.
While Apple wants to pick up iPhone sales, investors have their eyes on Apple’s services more so than hardware right now. In March, Apple announced new service offerings such as Apple TV Plus, news subscription service, Apple Arcade.
The pricing for the Apple TV+ video subscription service will be announced later this year.