Apple finds itself in a financial tug-of-war as declining iPhone revenue is being offset by growth in every other product category. When Apple reports 3Q19 earnings on Tuesday, we will get the latest snapshot of how this tug-of-war is playing itself out.
While the press remains infatuated with the storyline that slowing iPhone sales are driving Apple to become a services company, which isn’t true, such an intense focus on services is leading to a lack of attention being given to the incredible growth seen with Apple’s wearables platform and the turnaround story underway with the iPad business.
MacDailyNews Take: Guidance is important, but as Cybart notes, “FY4Q revenue guidance is heavily dependent on product launch timing in September. This produces a situation in which light guidance can be explained away more easily than in any other quarter.”
We’ll know for sure is Apple’s guidance will be perceived as strong, weak, or within expectations right around 4:30pm EDT today. Check our home page for results then!
In his full article, see Cybart’s other expectation meters:
• iPhone revenue
• Non-iPhone revenue
• Products vs. Services revenue