Apple announced today that it has posted net income of $11.6 billion on revenues of $58 billion for the quarter ending March 31. Both are major declines compared to the year-ago quarter.
“Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for Services, and the strong momentum of our Wearables, Home and Accessories category, which set a new March quarter record,” Apple CEO Tim Cook allegedly said in a rather complex prepared statement. “We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services.”
Left unmentioned there, of course, is the iPhone, Apple’s primary driver of both profits and revenues. In fact, Apple’s press release about its quarterly earnings doesn’t even mention the iPhone once beyond a boilerplate description of the company.
Apple does, however, mention the iPhone in a condensed statement of operations. There we can see that iPhone was responsible for over $31 billion, or about 53 percent of Apple’s total quarterly revenues. That’s a drop of 17.6 percent compared to the $37.6 billion in revenues that iPhone generated in the same quarter a year ago.
Mac revenues dropped as well: Mac was responsible for $5.5 billion in revenues, compared to $5.8 billion a year ago.
But iPad, Wearables, and Services both saw gains in the most recent quarter. Apple’s iPad business accounted for $4.9 billion in revenues, up from $4 billion a year earlier. Wearables hit $5.1 billion in revenues, up from $3.9 billion a year ago. And Service surged 14 percent to $11.5 billion in revenues, up from $9.9 billion a year ago.
Apple is pinning its future on Services, as you may have heard, and that business is now responsible for 20 percent of Apple’s revenues. Apple said it now has 390 million subscribers across its own and third-party services on its devices. It has a goal to hit 500 million subscribers by 2020.
As for the future, Apple did discuss the iPhone in a call with Reuters.
“As we look at the iPhone results through [the previous quarter], the results were stronger on a year-on-year basis for the last few weeks of the quarter,” Mr. Cook said. “We also saw a similar result in China. These, along with the continued success with wearables and so forth, give us some confidence that things are getting a bit better.”