Telecommunication giants, Apple have recorded a sharp drop in their iPhone sales, which is the major engine room of the company’s earnings.
The drop represents a 20 percent slide from the previous year, and this has gotten investors worried. More so, the company’s share price has nosedived more than four percent in after-hours trading.
According to their released record of earnings on Thursday, the Silicon Valley-based colossus disclosed that Apple’s profit dropped by 7 percent to $12.7 billion in the just-concluded quarter. This is despite the California-based tech giant earning a total revenue of $64.7 billion in the fiscal fourth quarter, up from that of last year.
Renowned analyst, Patrick Moorhead of Moor Insights and Strategy stated that “iPhone is the cash cow and the driver of pretty much every add-on service Apple has out there. Everything is tied to that.”
Apart from their selling of iPhones and iPads, Apple also sell apps, games, subscriptions, and music to iPhone users in order to expand its presence in the market as well as break its dependence on handset sales.
Other inputs they have in the market, asides the sale of iPhones include the Apple TV, App Store, Apple Watch and AirPod earbuds.
Moorhead further added, “I expect Apple in the next quarter to have a nice big surge due to the new models, and also the financing or new phones with monthly plans.”
Apple chief executive Tim Cook, in a statement, stated, “Apple capped off a fiscal year defined by innovation in the face of adversity with a September quarter record, led by all-time records for Mac and Services.”
