iPhone sales continue to slide in Apple's latest quarterly report

Apple continues to lose sales momentum with its mega iPhone business. The company no longer breaks out unit sales data for its line of smartphones, but iPhone revenue was down to US$31 billion for the past three months which is US$7 billion down on the same period 12 months ago. Still the company generates a total of US$58 billion in revenue thanks to its services revenue helping to compensate for the decline in iPhone sales.

Apple’s services business, which includes subscription services like Apple Music and News+, grew to US$11.5 billion for the quarter. Apple has been pointing heavily to this part of its business to allay concerns about lower iPhone sales and it looks like this has been warranted. However, Mac sales were down as well which combined with lower iPhone sales can’t be a positive when it is looking to push content on to more devices.

The other aspect of Apple’s business that continues to be robust is its wearables segment. Sales of devices like its AirPods are off the charts and are strongly supplemented by its Watch business. Combined, Apple’s wearables sales totaled US$5.1 billion. iPad sales were bolstered by the launch of the new iPad mini 5 and the new iPad Air helping the company boost iPad sales to $4.9 billion for the quarter, up US$800 million for the same period in 2018.