The main growth in the last quarter of the year was accounted for by wearable gadgets, such as Apple Watches and AirPods, as well as iPads, whereas iPhone and Mac sales went down.
Apple has published its earnings report for 4Q 2019. The figures suggest that the company's business model is increasingly shifting towards wearable gadgets and various services.
Against the backdrop of general decline in iPhone sales and Mac sale revenues being at the same level as last year, iPads and Apple Watches are growing in popularity. App Store, AppleCare + and Apple Pay services are also making a significant contribution to the company's overall profit growth. Apple’s earnings totaled $64 billion in the fourth quarter.
IPhone revenue totaled $33 billion, down 9% against the last quarter of the previous year. Mac sales fell by 5%, but Tim Cook attributed the drop to the release of the updated MacBook Air a year before, which boosted last year’s sales. Therefore, a certain backslide is quite natural. Updated this year was also Mac Pro, an expensive solution for professionals, which is not as mass-scale a device as MacBook Air.
Revenues from services, such as AppleCare and Apple Pay, grew by18%. The newly launched services Apple Card, Apple News + and Apple Arcade were not mentioned in the report as separate items.
IPad sales grew by 17% with the release of the new iPad Pro. A significant 54% growth was secured by sales of wearable devices including Apple Watches and AirPods. One of the latest news highlights of this quarter was the release of AirPods Pro. It seems that Apple intends to further focus on the development of this line of business.
In the next quarter, the company is expecting to generate from $85.5 to $89.5 billion in revenue. The first quarter of the year is usually the most successful one from the financial viewpoint, which is attributable to seasonal New Year sales growth.
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