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Apple’s revenue growth slows as iPhone sales dip 12% year-over-year

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Apple  just released its Q3 earnings and it had a solid June quarter, outperforming analyst expectations. The company reported $53.8 billion in revenue and $2.19 earnings per share. The company’s stock popped 4% on the news.

Apple’s June quarter revenue showcases just how much revenue growth has been slowing for the company. The Q3 2019 revenue of $53.8 billion just peeks above the Q3 2018 revenue of $53.3 billion, growing just 1%.

Across categories, iPhone revenue had the biggest year-over-year dip, going from $29.5 billion in last year’s Q3 to just $26 billion this most recent quarter.

“While this is down 12% from last year’s June quarter, it is a significantimprovement to the 17% year-over-year decline in Q2,” CEO Tim Cook said in the company’s earnings call.

The year-over-year decline in iPhone sales was made up for in a boost in all of the company’s other product categories, including a major bump in wearables sales, which crossed $5.5 billion in Q3. The Wearables, Home & Other division includes Watch, AirPods, Beats, HomePod, Apple TV and a lot of dongles.

The company hasn’t been sharing device numbers for the last several quarters and has instead focused solely on revenues, a sign of both the stagnating iPhone sales and the spike in the iPhone’s average selling price. The story for the last several quarters that Cook and Co. have been selling is the spike in Services revenue. This quarter, Services didn’t grow quite as much as analysts hoped, but it still reached $11.5 billion.

Regionally, the company saw slight gains across a few of its geographic markets, though it saw year-over-year declines in Greater China and Europe revenues.

One of the company’s biggest headlines this quarter came last week when the company announced it was purchasing “most of” Intel’s modem business for $1 billion. There aren’t likely to be too many near-term effects of this deal, though Apple aiming to own more of its supply chain has certainly been a decades-long effort for the company.

We’ll have more details from the company’s earnings call, which will be starting in a few minutes.

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