Today, Apple reported its Q3 2019 earnings to investors. Overall revenue is up 1% over the same quarter last year, reaching $53.8 billion. Apple CEO Tim Cook framed the report to investors as "a blowout quarter" for wearables, citing strong demand for the Apple Watch and AirPods as well as growth in services as counterbalances to a slight dip in iPhone sales.
iPhone revenue declined year over year (YOY) from $26.5 billion to $26 billion, and iPhones now make up less than half of Apple's revenue. Cook attempted to smooth over reactions to the drop, saying, "While this is down 12% from last year’s June quarter, it is a significant improvement to the 17% year-over-year decline in Q2." That previous-quarter decline sparked a plethora of hot takes from press and investors surmising the demise of Apple, despite the fact that the iPhone business alone would still be a Fortune 50 company on its own, even accounting for the decline.
Net sales for the iPad were just over $5 billion, and the Mac saw $5.82 billion on strong sales of the recently revised MacBook Air and MacBook Pro. Wearables reached $5.52 billion, while services hit $11.45 billion. Services grew 13% YOY, remaining Apple's biggest positive business story for yet another quarter. Apple claimed 420 million paid subscribers across its various services, indicated that services grew in all the regions the company tracks, and reiterated that it is on track to hit its goal to double services revenue by 2020.
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