Apple announced on Tuesday net profits of 41,570 million dollars in the first nine months of fiscal year 2019, representing a fall of 8.45% over the same period last year.
Between October and June, the company managed by Tim Cook earned 196,134 million dollars, down from 202,695 million a year ago, with a significant decline in product sales (iPhone phones, iPad tablets, Mac computers, etc.), but an increase in services (App Store, subscriptions, etc.). At the same time, Apple shareholders earned $8.92 per share, compared to $9.07 in profit for the same period in fiscal year 2018.
Analysts had already been concerned before the presentation of results given the pace that the company is dragging in recent times, with sales of the iPhone, its star product, down or stagnant worldwide. The firm of Cupertino (California, USA) entered in the last nine months 14.92% less sales of the popular smartphone, although this still represents more than half of total revenue.
Services, with a turnover increase of 15.89%, were a good sign for the company, which in recent times has decided to shift its strategy in this direction to compensate for the difficulty of growing in a hardware market increasingly saturated.
Another reason for hope for the firm was that the fall in sales in “Greater China” (a term that includes Taiwan) seems to have slowed in the last quarter, during which they have fallen only 4.1% year-on-year, compared to the sharp declines experienced at the beginning of the year. The “Greater China” represents for the iPhone manufacturer a market almost as large as the whole of Europe and, until recently, was one of its areas of greatest growth, something that changed in 2018 both by the pressure of its competitors in the Asian country (with cheaper quality models) and by the slowing of the Chinese economy and the trade tension between the U.S. and China.
Nevertheless, Apple’s results were better than analysts predicted, which led to its shares being rewarded on Wall Street and rising by 4.18% to 217.58 dollars per share in electronic transactions after the closing of New York’s exchange.