Apple reported financial results for the 2019 third-quarter. Despite the overall growth, it was the first time since 2012 the iPhone gave the company less than 50% of its revenue.
According to the published report, Apple's revenue was $53.8 billion. This is 1% higher than a year earlier. At the same time, sales of the key product — iPhone, decreased due to the general stagnation of the market and results were below expected in China - $25.99 billion against $29.47 billion a year ago.
However, this wasn't a hitch for the Apple CEO Tim Cook to claim that the third quarter was the "biggest" for Apple in history. He also stated that this period was the biggest third-quarter in history thanks to the record-breaking service revenue, faster sales growth of the portable devices, strong iPad and Mac sales, and a significant improvement in iPhone sales trends.
Most of the company's funds were spent on expanding the range of services, including the new streaming service — Apple TV+ and the Apple Arcade game. Both services will be launched this fall. In total, services accounted for 19% of revenue - $11.46 billion.
Apple expects to close the 2019 financial year with revenue of $61-64 billion, the gross quarterly profit of between 37.5 and 38.5 percent and operating expenses of $8.7-8.8 billion.