Apple confirmed its downward reversal in late 2018, burdened with the disappointing sale of its main phone, the iPhone, and reduced profits in China.
Despite the results, the US technology company managed to reassure investors and its share increased by almost 6 percent on the stock market, around 9:30 am.
The group showed that there are more sources of growth than the iPhone. Other devices, such as iPad tablets and Mac computers, especially services (streaming, cloud storage, digital payments), allowed the company to maintain an almost stable net income of nearly $ 20 billion.
"Although it is disappointing that we have not achieved our goal [inicial] in terms of revenue, we are working on Apple in the long run, and the results for this quarter show that our core strength is deep and broad, "said CEO Tim Cook.
Turnover in the last three months of 2018, the first quarter of fiscal year, fell 5% to 84.3 billion dollars.
This decrease was the result of a 15% drop in revenue from the iPhone ($ 52 billion), attributed by the company to the stagnation of the economy in China. On this huge market, the group earned $ 13.16 billion, which is 27% less.
However, revenues from services rose by 19 percent to $ 10.9 billion, slightly ahead of forecasts by analysts. And with the exception of the iPhone, all devices boosted sales.
For global data analyst Neil Saunders, "this unusual decline in turnover is a symbol of a company that begins to leak out of steam."
Earlier in January, the company was surprised to announce that revenue and sales of iPhone were worse than expected in the last three months of 2018.
According to the company, the disappointing sale of the phone is due to the stagnation of the Chinese economy and other developing countries, as well as the commercial war against China by US President Donald Trump.
The results were announced a few days after a security issue was found in FaceTime, your video call application. The error allowed the user to hear and see your caller on iPhone before responding. Apple terminated the service and vowed to fix the error this week.
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Apple had to convince investors that they had a strategy to reduce their dependence on the iPhone, whose sales are suffering from the saturation of the smartphone market.
So far, the US group has managed to offset the decline in sales with the launch of more expensive phones, with prices exceeding $ 1,000 for some models.
A strategy that works well, because turnover grows much faster than sales. However, it can begin to fail in a stagnating world economy.
The company also faces fierce competition from other manufacturers that offer similar and cheaper products. In addition to the global leader in the sector, South Korean Samsung, Apple faces the ambitious Chinese company Huawei on the world market.
Faced with this new situation, Apple launched the iPhone Xr in September, cheaper than Xs and Xs Max. According to the CIRP market analysis company, XR was sold better than the other two models in the US.
As always with Apple, there are numerous speculations about their designs. Many analysts believe, for example, that the group can decide to compete directly with Netflix and Amazon video services, investing a lot of money in the production of original content.
The company still does not have much in the industry, but last year announced that the famous host and entrepreneur Oprah Winfrey will produce programs for its audiovisual platform.