Following Apple’s release of its second quarter financial report, it’s now clear that the company recorded a sharp iPhone sales drop compared to the same period last year. Even then, the tech giant’s iPhone sales revenue of $31 beat projections by most analysts including Wall Street which had forecasted revenues of $30.5 billion. However, this was a 17% drop compared with the same period last year. Overall, the company announced combined revenues of $58 billion with profits of $11.5 billion which represented a drop compared to $13.8 billion recorded in the same period in 2018.
Apple projects improved sales
In its fiscal third quarter, Apple hopes to make sales worth $52.5 billion which is slightly higher than analysts’ projections of $51.9 billion. This could trigger an increase in the cost of shares if the actual revenue surpasses the forecasted results for the second quarter running. Investors can only hope the demand for the shares will equally be high.
Moving forward, Apple plans to focus more on the services industry which shows increased potential in terms of revenue. Currently, the company is looking for ways to improve its in-demand services offered by the App Store and the Apple Music. This follows the realization that consumers aren’t buying as many new smartphones as was the case a few years ago.
Maturing hardware business
While all this transformation is taking place, it is now apparent that sections of the Apple’s hardware business are maturing. Indeed, some analysts observe that this is the reason the company is having a tougher time convincing customers to buy its latest releases of iPhone. Even then, the tech giant is not taking the challenge lying down following its decision to charge more for devices that it will be releasing in future. iPhone users can only hope that this will be temporary as tough times lie in wait ahead.