Apple’s profit in the final quarter of 2018 was $20 billion a one per cent drop from the previous quarter which brought in $ 84.3 billion inspite of slow iPhone sales which was down 15 per cent from the same period in 2017.
The revenue growth came mainly from music, movies, apps and other services covering for slow iPhone sales.The full extent of the drop in iPhone sales was not clear because Apple for the first time stopped reporting unit sales for its iconic smartphones.Apple boosted sales of wearables and accessories by 33 per cent from last year.
Apple’s chief executive Tim Cook said,”While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide.”
Apple had been under pressure to show it can weather the slump in the global smartphone market and diversify its revenue base, and the latest results appeared to satisfy the market.
“Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments,” Cook said.
“It’s driving our Services business to new records thanks to our large and fast-growing ecosystem.” Apple took a hit in the “Greater China” region, where revenue plunged almost 27 per cent, which had been expected following the company’s latest revenue warning.