Based on Apple’s financial report as of the third quarter of 2019, iPhone sales declined nearly 12 percent to 26 billion US dollars compared to the same period last year.
The ongoing decline over the past 3 quarters has made iPhone sales no longer a major contributor to corporate earnings for the first time in recent years.
Its sales for iPhone cellphones only account for around 48 percent of total revenue. The decline is due to slowing demand because people currently using cellphones are more durable and durable.
iPhone Sales in China
Sales in China also decreased by 4 percent from the previous year. In fact, China is the most promising market for Apple.
Tim Cook, an Apple CEO said that Apple is trying to reverse the slowdown in China amid the ongoing trade war, which was once the most promising market.
Thus, the company is currently trying to increase business in China with a number of programs, such as trading programs and financing that are implemented in its retail stores.
However, there are still reasons to worry because the trade war still continues. Just last week, US President Donald Trump returned to singing he would refuse to free Apple from the spare parts rates for Mac Pro, which will be built in China.
“We have made Mac Pro in the US and we want to continue to do that. We are explaining that and hoping for positive results,” Cook said.
Despite the decline, Apple apparently managed to grow its overall income by around 1 percent compared to the previous year. Because, companies have an appeal in digital services available on their devices, such as Apple Pay and Apple Music.
In this segment, Apple’s sales reached almost 11.5 billion US dollars in the second quarter of 2019. While in the Apple Wearable, Home and Accessories segment, which includes products such as Apple Watch and AirPods, sales reached 5 billion US dollars.
Read more : Apple Warns US Tariffs on China Would Backfire
