The firm said revenue from the iPhone dropped by 17%, compared
with the same period a year earlier, to $31bn.
with the same period a year earlier, to $31bn.
Apple lifted its outlook for the three months to June.
That sent shares more than 5% higher in after-hours trading.
The company had warned ofslowing iPhone sales earlier this year, especially in
China, where Apple competes with cheaper rivals such as Huawei Technologies and
Xiaomi.
China, where Apple competes with cheaper rivals such as Huawei Technologies and
Xiaomi.
But Mr
Cook said price adjustments in China, lower Chinese taxes on the iPhone and new
trade-in and financing deals helped sales start to recover toward the end of
the quarter.
Cook said price adjustments in China, lower Chinese taxes on the iPhone and new
trade-in and financing deals helped sales start to recover toward the end of
the quarter.
He also credited improving demand for products such as the AppleWatch, along with progress in US-China trade talks.
“The trade relationship, versus the previous quarter, isbetter. The tone is better,” Mr Cook told Reuters. “The sum of all of
this together, it helped us.” Apple has lifted
its guidance for its third quarter revenue to between $52.5bn and $54.5bn.
this together, it helped us.” Apple has lifted
its guidance for its third quarter revenue to between $52.5bn and $54.5bn.
For the three months to March, total sales hit $58bn compared to
analysts’ estimates of $57.3bn.
analysts’ estimates of $57.3bn.
However, that is below total sales of $61.1bn in the second
quarter last year. And while demand improved in China, sales in the region were
still down by 20%.
quarter last year. And while demand improved in China, sales in the region were
still down by 20%.
Apple is attempting to shift its reliance on the iPhone towards
services and last month unveiled its new TV streaming platform, Apple TV+, to
take on the likes of more established companies such as Netflix.
services and last month unveiled its new TV streaming platform, Apple TV+, to
take on the likes of more established companies such as Netflix.
But Yoram
Wurmser, principal analyst at eMarketer, said long-term growth in services and,
to a less extent, other devices “depend on having as many users as
possible in the Apple ecosystem, and that’s still primarily about the
iPhone”.
Wurmser, principal analyst at eMarketer, said long-term growth in services and,
to a less extent, other devices “depend on having as many users as
possible in the Apple ecosystem, and that’s still primarily about the
iPhone”.