KEY POINTS 

  • Apple's fiscal Q1 2019 represents the first time in over a decade the company saw declines in both revenue and profit during a holiday season. This was driven primarily by lower than expected iPhone upgrades; iPhone revenue fell a striking 15% year-over-year (YoY) to $52 billion.
  • Apple’s peripheral segments — 'Services' and 'Wearables, Home, and Accessories' — were two bright spots for the company. Revenue outside of the iPhone grew 19% YoY. These segments will be integral to Apple’s bottom line as smartphone revenue declines. 
  • The Services segment expanded its lead as the second-largest contributor to Apple’s revenue in the quarter. Services accounted for 13% of all revenue in Q1, up from 10% the prior year. Apple can continue this momentum by expanding the offerings on the segment's most notable contributor, the App Store, with a focus on AR and gaming subscriptions. 
  • Apple's Wearables, Home, and Accessories segment is also gaining traction, as it saw the biggest growth in Q1 of all of Apple's segments. The segment reached record-breaking revenue of $7.3 billion, marking 33% annual growth, with the Apple Watch as a chief driving force. The company can continue developing tech products in emerging categories like AR and self-driving cars to keep up the pace of revenue growth in this segment.

Apple Quarterly Revenue And Year Over Year GrowthBusiness Insider Intelligence

Apple’s fiscal Q1 2019 (ended December 29, 2018) featured record-setting results across its Services and Wearables, Home, and Accessories segments, but was undercut by negative YoY growth across its key product line, the iPhone. Missing the mark on the iPhone took a toll on overall revenue for the quarter: Apple’s quarterly revenue fell 5% YoY to reach $84.3 billion. For total profit, Apple generated $20 billion, a 1% YoY drop. This represents the first time in over a decade the company saw declines in both revenue and profit during a holiday season.  

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