Sentiments toward Apple product remained very high despite declining iPhone sales for the second consecutive quarter and the ongoing US-China trade war, GlobalData, an analytic company revealed.
According to GlobalData’s Company Filing Analytics platform, which analyzes and showcases sentiments across companies and sectors, Apple’s revenue declined by 7.2 percent in the third quarter (Q3) ended June 2019, marking its second consecutive quarter of decline with its flagship product iPhone, which accounts for approximately 50percent of the company’s revenue. Apple has shown no signs of recovery in sales since the last three quarters.
The sentiments, GlobalData attributed to the sales growth in product categories outside of iPhone and, in particular, the strong performance of its services and wearables businesses. “Apple has strategically invested in these two areas over the last several years and now the two businesses collectively make for the size of a Fortune 50 company,” said Vaibhav Khera, Director at GlobalData.
Apple’s services business generated an all-time-high revenue of US$11.5bn in Q3 2019. The company’s objective is to increase the size of its services business two-fold from 2016 to 2020.
The combined sales of the company’s wearables and services businesses as a proportion of total revenue also increased from 21.6% in Q1 2019 to 31.6% in Q3 2019, with services business alone accounting for 21.3% share in Q3 2019. This is also helping the company in reducing its reliance on iPhone sales.