IPhone sales continue to decline Apples growth model will shift to hardware + services

category:Finance
 IPhone sales continue to decline Apples growth model will shift to hardware + services


IPhone is still an important source of Apples revenue. In the fourth quarter, iPhone revenue reached $33.36 billion, down 9% year on year. Compared with the 15% decline in the previous quarter, iPhone revenue still accounts for more than half of the total revenue. Revenue from services continued to rise to $12.55 billion.

Apple CEO Tim Cook is optimistic that the shopping season will be strong this year.

Its worth noting that Apples service revenue has increased by 18%. At present, Apples service industry revenue includes Apple warranty service, apple cloud business and apple music subscription. According to apple, the subscription revenue of Apple mall increased by 40% year on year, and there are 450 million paid subscribers of apple. Next month, Apple will officially launch its video subscription service.

In addition, apple hinted that it might consider launching a hardware plus software binding subscription service. For example, if users subscribe to Apple cloud service or Apple TV content, they can get the upgrade service of iPhone hardware by paying a monthly subscription fee. This mode may break Apples traditional sales promotion by selling iPhone hardware alone, and turn Apples revenue growth to software promotion.

Cook also said similar plans were being rolled out gradually. Hardware as a service or hardware binding mode, there are already plans for users to enjoy hardware upgrades, he said. Cook also stressed that this is a huge growth area. I think the growth in the future will be very large, even disproportionate.

In the fourth quarter, Apples wearable hardware revenue surged 54% to $6.52 billion. Apple just announced the second generation of Apples earphone, airpodspro, which costs $249. Airpods is also expected to promote Apples sales in the shopping season. Apples wearable devices are growing in every region of the world. Cook said. The U.S. market remains Apples strongest performing market, with sales in Europe, Japan and greater China down slightly year-on-year in the fourth quarter, in addition to U.S. sales growth. Apples current cash flow is $205.9 billion, down 2.2% from the previous quarter, mainly due to Apples aggressive buyback strategy. Apple said it spent $18 billion on share buybacks and $3.5 billion on dividends in the past quarter. Source: First Financial Editor: Chen Hequn, nb12679

In the fourth quarter, Apples wearable hardware revenue surged 54% to $6.52 billion. Apple just announced the second generation of Apples earphone, airpodspro, which costs $249. Airpods is also expected to promote Apples sales in the shopping season. Apples wearable devices are growing in every region of the world. Cook said.

The U.S. market remains Apples strongest performing market, with sales in Europe, Japan and greater China down slightly year-on-year in the fourth quarter, in addition to U.S. sales growth.

Apples current cash flow is $205.9 billion, down 2.2% from the previous quarter, mainly due to Apples aggressive buyback strategy. Apple said it spent $18 billion on share buybacks and $3.5 billion on dividends in the past quarter.