Apple reports "disappointing" quarter as iPhone sales fall 15 per cent

Tyrone Stewart

People try iPhone XSApple revenue for the quarter ended 29 December 2018 fell by five per cent from the same quarter in 2017, reporting a quarterly revenue of $84.3bn. However, quarterly earnings per diluted share rose 7.5 per cent to an all-time high of $4.18.

Overall, the quarter was a “disappointing” one for Apple. Despite generally falling in line with Wall Street estimates, the company fell short on its own revenue guidance. This is predominantly down to the poor iPhone sales experienced by Apple, particularly in China. iPhone revenue fell 15 per cent compared to the previous year.

On the other hand, total revenue from all other products and services grew to 19 per cent. Breaking this down, services revenue was up 19 per cent to reach an all-time high of $10.9bn. Mac revenue also reached an all-time high, growing nine per cent, as did the wearables, home and accessories division, which grew 33 per cent. iPad revenue was up 17 per cent.

“While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,” said Tim Cook, Apple CEO. “Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That’s a great testament to the satisfaction and loyalty of our customers, and it’s driving our Services business to new records thanks to our large and fast-growing ecosystem.”