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iPhone sales fall below half of Apple revenue for the first time since 2012

Apple revenue remains strong although iPhone sales continue to decline. (Source: Apple)
Apple revenue remains strong although iPhone sales continue to decline. (Source: Apple)
Apple’s iPhone business continues to weaken with sales down 12 percent over the same time last year. At the same time its Services business enjoyed a record quarter which combined with the decline in iPhone sales meant that for the first time since 2012 iPhone sales accounted for less than half of Apple’s total revenue.

Like its arch-rival Samsung, Apple continues to see a decline in its flagship smartphone line. iPhone sales were down a substantial 12 percent over the same period last year but Apple’s pivot towards leveraging its massive install base to drive Services revenue is paying off helping to offset the decline in iPhone sales.  However, the record Services revenue of US$11.46 billion mean that combined with lower iPhone sales mean that for the first time since 2012, iPhone revenue accounted for less than half of Apple’s total revenue for the quarter.

The news arrives at the same time as Apple launched a buy-one-get-one-free offer on the iPhone Xr in its US stores, something that few if any ever expected to see. The special offer involves signing up for a new service with a carrier, but it does underline Apple’s trouble shifting iPhones in the volumes that it has been used to in previous years. However, also helping to fill the hole in iPhone sales was the continued success of its Watch while Mac and iPad sales were also strong with the iPad bouncing back with a US$1 billion increase sales revenue year-over-year.

All in all, Apple still managed to achieve a record fiscal third quarter revenue figure of US$53.8 billion which beat the previous record set this time last year by just 1 percent. “This was our biggest June quarter ever — driven by all-time record revenue from services, accelerating growth from wearables, strong performance from iPad and Mac and significant improvement in iPhone trends,” Cook said in statement released by the company. “These results are promising across all our geographic segments, and we’re confident about what’s ahead. The balance of calendar 2019 will be an exciting period, with major launches on all of our platforms, new services and several new products.”

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Apple launched its first buy-one-get-one-free iPhone offer in the US this week. (Source: Mark Gurman)
Apple launched its first buy-one-get-one-free iPhone offer in the US this week. (Source: Mark Gurman)
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2019 07 > iPhone sales fall below half of Apple revenue for the first time since 2012
Sanjiv Sathiah, 2019-07-31 (Update: 2019-07-31)
Sanjiv Sathiah
Sanjiv Sathiah - News Editor
I have been tech-obsessed from the time my father introduced me to my first computer, an Apple ][. Since then, I have grown to enjoy exploring and experimenting with any computing platform that I can get my hands on – I am the definitive early adopter! I have always been interested in how we can use technology to shape and improve our lives, most recently using it to record, mix and master my debut record, Acuity – Nature | Nurture out now on Spotify.