Apple Revenues Declined 1 Percent in Q2, But Services and Devices Set Records

Apple announced that it earned a net income of $19.9 billion on revenues of  $81.8 billion in the quarter ending July 1. Net income was flat with the year-ago quarter, but revenues declined 1 percent year-over-year (YOY).

“We are happy to report that we had an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions, and we saw continued strength in emerging markets thanks to robust sales of iPhone,” Apple CEO Tim Cook said. “From education to the environment, we are continuing to advance our values, while championing innovation that enriches the lives of our customers and leaves the world better than we found it.”

Apple set two records in the quarter, the previously-mentioned record Service revenues and a record number of active devices across iPhone, iPad, Mac, Apple Watch, and the firm’s other hardware products, and in every geographic segment. Apple did not, however, provide that number.

The iPhone remains Apple’s most popular product, with $36.7 billion in revenues, a decline of 2.45 percent from the $40.67 billion it earned in the year-ago quarter. The iPhone now represents 44.8 percent of Apple’s overall revenues.

Services was again Apple’s second-biggest business, with $21.2 billion in revenues, a gain of 8.2 percent YOY. The Mac and iPad both delivered lower revenues than in the year-ago quarter, at $6.8 billion and $5.8 billion, respectively. And Apple’s Wearables, Home, and Accessories delivered $8.3 billion in revenues, up 3.75 percent YOY.