SEVERE WX : Air Stagnation Advisory View Alerts

Apple's iPhone sales fall 17% from prior year

At one time, the staggering success of the iPhone helped catapult Apple to become the world's most valuable company. Now, its lackluster smartphone sales are...

Posted: May 1, 2019 5:44 AM

At one time, the staggering success of the iPhone helped catapult Apple to become the world's most valuable company. Now, its lackluster smartphone sales are dragging down Apple's business.

Apple said Tuesday that its revenue for the first three months of 2019 declined 5% from the year prior to $58 billion as it grappled with sluggish smartphone demand. iPhone sales for the period fell 17% from the year prior.

For years, Apple's iPhone business appeared to defy gravity as the company managed to sell more devices and gradually charge more for them. But that narrative was shattered at the beginning of this year when the company warned investors that iPhone sales had taken a hit from a slowdown in China amid an ongoing trade war.

However, on a conference call with analysts after the earnings report Tuesday, CEO Tim Cook signaled that the worst may be over for the iPhone as Apple sees signs of improvement in China. In particular he cited "improved trade dialogue" between China and the United States and "very positive customer response to the pricing actions we've taken in that market."

Apple has faced stiff competition in China from competitors like Huawei and Xiaomi, which offer cheaper smartphones at a time when Apple is embracing phones with four-figure price tags. Apple recently reduced the price of some of its products, including the iPhone XS and XR, by nearly 6% in some instances.

Still, Apple has a long way to go to start growing again in China, which was not long ago viewed as one of its most promising markets. Apple posted revenue of $10.2 billion in China for the first three months of the year, down 21% from $13 billion in the same period a year ago.

"While China continues to be soft, it appears Apple saw strength in the last few weeks of the quarter across the board on a rebound in iPhone demand," Daniel Ives, an analyst with Wedbush, wrote in an investor note Tuesday after the report.

Looking back at the last five months, Cook said "November and December were the most challenging." Cook added: "Our goal now is to pick up the pace."

During the most recently completed quarter, Apple offset some of its iPhone declines with continued growth in its digital services business. The services segment, which includes products such as Apple Pay, Apple Care and Apple Music, generated a record $11.5 billion in revenue during the quarter, a 16% increase from a year ago. It is currently Apple's second biggest revenue driver, ahead of the Mac and iPad.

Apple is looking to grow this segment even more: last month it held a splashy, celebrity-filled press event to unveil multiple new paid subscription services.

The growth in services helped push Apple's overall revenue above Wall Street's muted expectations. Apple also appeased investors by announcing plans to repurchase another $75 billion worth of shares and increasing its dividend.

Apple stock rose 5% in after-hours trading Tuesday following the earnings report.

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 79293

Reported Deaths: 973
CountyCasesDeaths
Multnomah18432251
Washington11175104
Marion9745153
Clackamas684183
Lane458650
Umatilla450250
Jackson402838
Deschutes255815
Malheur247245
Yamhill181817
Linn164124
Polk134319
Douglas99819
Klamath9475
Jefferson87811
Benton8557
Union8158
Morrow6757
Lincoln67015
Josephine5795
Wasco55419
Columbia5444
Coos4583
Hood River4343
Clatsop3820
Baker3014
Crook2486
Curry1532
Tillamook1480
Lake1451
Grant1391
Harney1051
Wallowa723
Gilliam230
Sherman230
Wheeler60
Unassigned00

California Coronavirus Cases

Data is updated nightly.

Cases: 1286550

Reported Deaths: 19553
CountyCasesDeaths
Los Angeles4218817782
San Bernardino991041154
Riverside900891457
San Diego861421040
Orange816531586
Kern42937451
Sacramento39367591
Fresno39324488
Santa Clara36673495
Alameda30980522
San Joaquin26784519
Contra Costa25264261
Stanislaus22876433
Tulare21789314
Ventura21208185
Imperial16507358
Monterey16064124
San Francisco16058161
San Mateo15040170
Sonoma12795160
Merced12427185
Santa Barbara11720138
Kings1155589
Solano1111981
Marin7873129
Placer694172
Madera648290
San Luis Obispo637838
Shasta536552
Yolo506881
Santa Cruz476633
Butte424460
Sutter373319
Napa329818
El Dorado26384
Yuba231011
Lassen22203
San Benito200717
Tehama180026
Mendocino165723
Nevada145510
Tuolumne112811
Glenn99611
Humboldt9939
Lake97221
Colusa7566
Siskiyou7524
Amador74016
Mono5773
Calaveras55322
Del Norte3841
Inyo31416
Plumas2390
Trinity1700
Modoc1620
Mariposa1483
Alpine520
Sierra230
Unassigned00
Medford
Clear
33° wxIcon
Hi: 55° Lo: 31°
Feels Like: 33°
Brookings
Clear
42° wxIcon
Hi: 56° Lo: 41°
Feels Like: 42°
Crater Lake
Clear
24° wxIcon
Hi: 48° Lo: 23°
Feels Like: 17°
Grants Pass
Overcast
32° wxIcon
Hi: 50° Lo: 31°
Feels Like: 32°
Klamath Falls
Clear
24° wxIcon
Hi: 51° Lo: 21°
Feels Like: 17°
Patchy Friday morning fog
KDRV Radar
KDRV Fire Danger
KDRV Weather Cam

Community Events