Apple Earnings: Profits Slip, iPhone Sales Fall Way Short of Estimates

Lately, Apple has been offering trade-in deals for the entry-level iPhone XR, cutting its retail price to as low as $449 from $749. "The clear blue water that once existed between Apple and rivals is much diminished". Without getting into detail, Cook suggested Apple will get further into the original video content business. Recent earnings definitely prove the potential for growth and profits there. The company has several initiatives in play to ensure it improves on its results, he added.

What's different now is that Apple is no longer disclosing how many iPhones it shipped after the quarter is completed, a change that Cook announced in November. Apple's services reached 360 million subscribers all over the world, over 100 million gained from the same point a year ago, which synchronizes with all the payment methods it's expanding (including, obviously, Apple Pay).

Apple is also growing its Services business by increasing the scope of those services, Maestri said. Apple also gave old iPhones new life last by offering to replace aging batteries for $29, a 70 percent discount.

The company reported earnings for its December quarter Tuesday, revealing that iPhone revenue fell 15 percent, compared with the same time previous year. It earned a total of $19.97 billion in total profit.

"I distinctly recall Cook telling analysts during a quarterly earnings call that, having studied the country for 30 years, he knew China", Gassee said in a blog.

Apple's iOS install base now stands at 1.4 billion devices, which has helped send services revenue to record highs, at $10.9 billion for the quarter, up 19% year over year. Apple stock were up 6 per cent at the end of trading. Sure, Apple is still making money hand over fist, but Tim Cook a few weeks back wrote a letter to investors and informed them that Apple's revenue for the holiday quarter would be a few billion dollars less than initially anticipated.

"Weak macro conditions in some emerging markets [were] significantly more severe than we originally foresaw, especially in greater China", Mr. Cook said.

During the holiday season, Apple managed to bring in $84 billion, compared of $88 billion a year ago.

Slowing iPhone sales and a weakening Chinese economy are taking a toll on Apple Inc. and increasing the tech giant's reliance on its software and services for growth.

Apple also reported that it generated a cash flow of $26.7 billion in the quarter. Intel voiced a similar line last week in missing expectations for its fourth quarter. In the US, Cook said, the latest data from comScore shows that Apple News has the largest audience of all news apps. "That's the way we look at it".

However, the firm's shares gained nearly 4% in after-hours trade on Tuesday, as the firm proved more resilient than feared.

  • Zachary Reyes