- Apple topped Wall Street targets in its fiscal Q2, even though its overall revenue declined.
- The company is in the midst of a major shift to its business, as it emphasizes services over device sales.
- These charts show which parts of the Apple business stood out in fiscal Q2.
- Visit Business Insider’s homepage for more stories.
Apple’s stock got a nice boost on Tuesday after the company posted better-than-expected results for its fiscal second quarter.
Of course, it’s worth keeping in mind that Apple didn’t have a very high bar to clear. Wall Street expecations were low, as the company faces slowing demand for its main money maker, the iPhone. While Apple’s revenue “beat” expectations, its overall business is shrinking.
Here’s a closer look at how the various parts of Apple’s business empire — from iPhones sales to its R&D budget — fared in the first three months of 2019.
Apple’s total revenue did something that would once have seemed inconceivable: it shrunk.
The $58 billion in fiscal Q2 revenue was below the $61.1 billion revenue that Apple generated in the year-ago period.
It was the second consecutive quarter in which Apple’s revenue has shrunk on a year-over-year basis.
iPhone sales suffered a sharp slowdown in fiscal Q2.
The cause of Apple’s revenue decline is the iPhone.
Every segment in Apple’s business, from Macs to Services, were stable or grew during fiscal Q2; even the long-troubled iPad business managed to grow revenue.
But iPhone sales took a big tumble, coming in $7 billion below where they were at this time last year.
That’s a problem because Apple’s bread and butter is the iPhone.
The blue segment of the bars on the chart represent Apple’s iPhone sales. As you can see, it’s the biggest part of the chart, comprising the majority of Apple’s business.
iPhone’s revenue contribution has fluctuated over the years, but it’s never dipped below 50% of total revenue since at least 2013. As Apple seeks to diversify its business, the iPhone’s percentage of the company’s total revenue will be an important metric to watch.
See the rest of the story at Business Insider