Apple (AAPL) Q2 Earnings To Benefit From Non-iPhone Segments
Zacks Investment Research | Apr 28, 2019 11:52PM ET
Apple’s (NASDAQ:AAPL) non-iPhone segments — Services, Wearables, Mac and iPad — are expected to play significant roles in the second quarter of fiscal 2019, scheduled to be released on Apr 30.
The Services business, which includes revenues from Internet Services, App Store, Apple Music, Apple Care, Apple Pay, and licensing and other services, has become the new cash cow for the company. Services revenues accounted for 19.1% of sales in first-quarter 2019.
Moreover, the Wearables business, which includes Apple Watch, Beats and AirPods, is expected to stay in limelight. In the last reported quarter, revenues from Apple TV, Apple Watch, Beats products, iPod, and Apple-branded and third-party accessories accounted for 8.7% of sales.
Notably, Apple’s non-iPhone businesses grew 19% year over year in the last reported quarter. However, non-iPhone segments’ strong performance was not enough to drive the top line in the last reported quarter. Net sales decreased 4.5% year over year to $84.31 billion, primarily due to weakness in iPhone sales, which fell 15% and accounted for 61.7% of total sales.
Hence, performance of these non-iPhone segments in the second quarter will be eagerly watched by investors to measure the success of Apple’s revenue diversification strategy.
Apple Inc. Revenue (TTM)
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