Apple iPhone sales drop 12% to $25.99 bn in third quarter

Apple iPhone sales dropped to less than half of quarterly revenue for the first time in seven years.
Apple iPhone in Japan

iPhone sales decreased 12 percent to $25.99 billion in the fiscal third quarter ended in June after dropping 17 percent in the previous quarter.

Strategy Analytics in its research report said Apple iPhone shipped 38 million units to capture 11 percent global smartphone market share in Q2 2019 as compared with 12 percent a year ago.

Apple iPhone shipments fell 8 percent, making it the worst performer among the world’s big-five smartphone players. Apple is stabilizing in China due to price adjustments and buoyant trade-ins, but other major markets such as India and Europe remain challenging for the expensive iPhone.

Apple said its services revenue in the fiscal third quarter rose 12.6 percent to $11.46 billion, a new record.

Apple reported a 1 percent rise in revenue to $53.8 billion for the fiscal third quarter ended in June.

Apple said revenue for its “Wearables, home and accessories” segment that contains devices like the Apple Watch and AirPods was $5.53 billion.

Apple revealed that it generated third quarter sales of $25.056 billion from Americas, $11.925 billion from Europe, $9.157 billion from Greater China, $4.082 billion from Japan and $3.589 billion from Rest of Asia Pacific.

Apple said it generated revenue of $25.986 billion from iPhone sales, $5.820 billion from Mac, $5.023 billion from iPad, $5.525 billion from Wearables, Home and Accessories and $11.455 billion from Services during the third fiscal quarter.

China sales fell 4 percent to $9.16 billion, improving on a drop of 22 percent in the fiscal second quarter.

Apple’s market share in China declined to 5.8 percent from 6.4 percent, according to market research firm Canalys. Chinese smartphone rival Huawei Technologies gained market share to become the top handset seller in the country.

Apple said it expects revenue for the current fiscal fourth quarter of between $61 billion and $64 billion.

Apple CEO Tim Cook told investors on a conference call Tuesday that Apple has 420 million paid subscribers to its own services and third-party apps. The company has set a goal of 500 million by 2020.