Apple's iPhone sales fall 17% from prior year

At one time, the staggering success of the iPhone helped catapult Apple to become the world's most valuable company. Now, its lackluster smartphone sales are...

Posted: May 1, 2019 7:44 AM

At one time, the staggering success of the iPhone helped catapult Apple to become the world's most valuable company. Now, its lackluster smartphone sales are dragging down Apple's business.

Apple said Tuesday that its revenue for the first three months of 2019 declined 5% from the year prior to $58 billion as it grappled with sluggish smartphone demand. iPhone sales for the period fell 17% from the year prior.

For years, Apple's iPhone business appeared to defy gravity as the company managed to sell more devices and gradually charge more for them. But that narrative was shattered at the beginning of this year when the company warned investors that iPhone sales had taken a hit from a slowdown in China amid an ongoing trade war.

However, on a conference call with analysts after the earnings report Tuesday, CEO Tim Cook signaled that the worst may be over for the iPhone as Apple sees signs of improvement in China. In particular he cited "improved trade dialogue" between China and the United States and "very positive customer response to the pricing actions we've taken in that market."

Apple has faced stiff competition in China from competitors like Huawei and Xiaomi, which offer cheaper smartphones at a time when Apple is embracing phones with four-figure price tags. Apple recently reduced the price of some of its products, including the iPhone XS and XR, by nearly 6% in some instances.

Still, Apple has a long way to go to start growing again in China, which was not long ago viewed as one of its most promising markets. Apple posted revenue of $10.2 billion in China for the first three months of the year, down 21% from $13 billion in the same period a year ago.

"While China continues to be soft, it appears Apple saw strength in the last few weeks of the quarter across the board on a rebound in iPhone demand," Daniel Ives, an analyst with Wedbush, wrote in an investor note Tuesday after the report.

Looking back at the last five months, Cook said "November and December were the most challenging." Cook added: "Our goal now is to pick up the pace."

During the most recently completed quarter, Apple offset some of its iPhone declines with continued growth in its digital services business. The services segment, which includes products such as Apple Pay, Apple Care and Apple Music, generated a record $11.5 billion in revenue during the quarter, a 16% increase from a year ago. It is currently Apple's second biggest revenue driver, ahead of the Mac and iPad.

Apple is looking to grow this segment even more: last month it held a splashy, celebrity-filled press event to unveil multiple new paid subscription services.

The growth in services helped push Apple's overall revenue above Wall Street's muted expectations. Apple also appeased investors by announcing plans to repurchase another $75 billion worth of shares and increasing its dividend.

Apple stock rose 5% in after-hours trading Tuesday following the earnings report.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 500709

Reported Deaths: 9977
CountyCasesDeaths
Harrison34312538
DeSoto32080403
Hinds31924627
Jackson24482379
Rankin21983390
Lee15530235
Madison14574280
Jones13838242
Forrest13447251
Lauderdale11985316
Lowndes11030188
Lamar10508135
Pearl River9503237
Lafayette8547139
Hancock7728126
Washington7422157
Oktibbeha7142131
Monroe6769176
Warren6682176
Pontotoc6659102
Neshoba6635206
Panola6520131
Marshall6462134
Bolivar6313148
Union602494
Pike5817152
Alcorn5667101
Lincoln5433135
George496779
Scott472698
Tippah469081
Prentiss466881
Leflore4657144
Itawamba4633105
Adams4586119
Tate4584110
Copiah448592
Simpson4445116
Yazoo443987
Wayne439772
Covington428794
Sunflower4237105
Marion4225108
Coahoma4159104
Leake408288
Newton381679
Grenada3706108
Stone359764
Tishomingo359692
Attala331489
Jasper329965
Winston314291
Clay307976
Chickasaw299667
Clarke292494
Calhoun279346
Holmes267887
Smith263850
Yalobusha233747
Tallahatchie227151
Greene219048
Walthall218763
Lawrence212440
Perry205356
Amite205155
Webster202746
Noxubee186640
Montgomery179656
Jefferson Davis171542
Carroll168838
Tunica159439
Benton148738
Kemper141941
Choctaw133426
Claiborne132437
Humphreys129238
Franklin120028
Quitman106428
Wilkinson105139
Jefferson94534
Sharkey64020
Issaquena1937
Unassigned00

Alabama Coronavirus Cases

Cases: 817054

Reported Deaths: 15320
CountyCasesDeaths
Jefferson1145501922
Mobile724601333
Madison52172694
Shelby37533348
Baldwin37192547
Tuscaloosa35044606
Montgomery34067734
Lee23195245
Calhoun22205476
Morgan20754376
Etowah19811497
Marshall18317302
Houston17345411
St. Clair15983339
Cullman15383292
Limestone15298198
Elmore15161284
Lauderdale14225294
Talladega13802276
DeKalb12622260
Walker11162369
Blount10162175
Autauga9954146
Jackson9844182
Coffee9195191
Dale8880185
Colbert8826201
Tallapoosa7071198
Escambia6764130
Covington6699183
Chilton6627161
Russell627959
Franklin5955105
Chambers5567142
Marion4982126
Dallas4936200
Clarke474583
Pike4722105
Geneva4566126
Winston4502103
Lawrence4296117
Bibb424086
Barbour356676
Marengo337789
Monroe331463
Randolph328763
Butler325696
Pickens315682
Henry311965
Hale311088
Cherokee301760
Fayette291879
Washington251351
Cleburne247360
Crenshaw244375
Clay241768
Macon232363
Lamar222047
Conecuh185853
Coosa179739
Lowndes174564
Wilcox167939
Bullock151644
Perry138340
Sumter132738
Greene126644
Choctaw88127
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