Apple announces $ 33.4 billion in iPhone sales in Q4 2019, down 9% from a year earlier
- Tech giant's biggest product falls for second consecutive year
- Despite the decline of the iPhone, Apple made the best fourth-quarter revenue in the company's history.
- Apple says growth is being driven by its wearables and services division
The drop in Apple iPhone sales continued with the release of its latest models, the iPhone 11 and 11 Pro.
In a earnings call released today, Apple announced that iPhone revenue for the fourth quarter of fiscal 2019 was $ 33.4 billion, a nine percent drop in sales for the fourth quarter of 2018.
Looking for the silver lining, CEO Tim Cook noted that there was less decline than the fifteen percent drop between the fourth quarter of 2017 and the fourth quarter of 2018.
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On June 3, 2019, Apple CEO Tim Cook on the left and Design Director Jonathan Ive watch a Mac Pro in the Apple Worldwide Developers Conference showroom in San Jose, California. wins on Wednesday, October 30th. (AP Photo / Jeff Chiu, File)
Despite slowing iPhone sales, Apple posted record revenue of $ 64 billion in the quarter.
The gains came despite the currency impact of the aftermath of Donald Trump's trade war with China, which Cook estimated cost the company another $ 1 billion.
Apple attributed its success to revenue growth of 50% in its wearables business, which includes Apple Watch, AirPods and the Beats headset line.
ARCHIVE – On July 24, 2019, an archive photo shows an Apple Store in Chicago. Apple Inc. reports financial gains on Wednesday, October 30. (AP Photo / Amr Alfiky, Archive)
Apple says its apparel business is now about the same size as Mac's.
Another key growth factor was the company's emerging services business, which includes the App Store, iCloud, Apple Music, Apple Arcade, Apple TV +, Apple Pay and Apple Card, a new custom credit card announced in March.
APPLE Q4 2019 SUMMARY
Apple earned $ 64 billion in total revenue in the quarter.
IPhone sales accounted for $ 33.4 billion, a decline of nine percent year over year.
The main growth came from Apple's apparel accessories business, including Apple Watch, AirPods and Beats.
Apple wearables produce about the same revenue as their Mac products.
There were more than 3 billion Apple Pay transactions in the quarter.
Apple has also announced a new program where users can sign up for an Apple Card and use it to buy a new iPhone, with 24 months to pay without interest.
The company says it now has $ 260 billion in cash, more than two and a half times Puerto Rico's GDP.
After several adjustments, the company has $ 108 billion in debt.
CFO Luca Maestri says Apple will continue to work toward a cash neutral position in the future.
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