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Apple Sees Drop in iPhone Sales at Record Pace

Services revenue rose to $11.4 billion from $9.8 billion in the same quarter last year

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The Apple logo is shown outside the company's Worldwide Developers Conference in San Francisco, California. VOA

Apple posted better earnings and revenue than Wall Street expected for the March 2019 quarter — even as sales of its flagship iPhones were $6.5 billion lighter in the period, down by 17 per cent.

iPhones sales fell at their steepest-ever rate during the three months to the end of March but are showing signs of stabilising, the BBC reported.

Apple lifted its outlook for the three months to June, sending its shares over 5 per cent higher in after-hours trading.

The company had warned on iPhones sales earlier this year, citing China where Apple competes with cheaper rivals such as Huawei Technologies and Xiaomi.

Apple chief executive Tim Cook though said sales were stronger towards the end of March, including in China where it cut iPhone prices to boost demand.

For the quarter ended March 30, which is Apple’s fiscal year 2019 second quarter, the company reported revenue of $58.0 billion, down 5 per cent from the year-ago quarter, and earnings per diluted share of $2.46, down 10 per cent.

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Apple CEO Tim Cook speaks during an event to announce new products, Oct. 30, 2018, in the Brooklyn borough of New York. VOA

Wall Street analysts’ consensus estimates had projected Apple to report revenue of $57.37 billion and EPS of $2.36. Apple’s stock rose over 5 per cent in after-hours trading.

While iPhone revenue fell, to $31.05 billion, Apple’s Services segment — which includes the App Store, Apple Music, iCloud, Apple Care and Apple Pay — generated quarterly record revenue of $11.5 billion, up 16 per cent.

According to the CEO, Apple had 390 million paid subscriptions at the end of March, up 30 million in the last quarter.

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Apple is also attempting to shift its reliance on the iPhone towards services and last month unveiled its new TV streaming platform, Apple TV+, to take on the likes of more established companies such as Netflix.

Services revenue rose to $11.4 billion from $9.8 billion in the same quarter last year. (IANS)

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2020 5G iPhone Won’t Get a Major Price Increase

While, two low-end models (6.1-inch, 5.4-inch) will not have mmWave or World facing 3D sensing, and will have a dual-lens camera

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Entry of Apple into the 5G race in the third quarter of 2020 will catapult the iPhone maker to top position, ahead of Samsung and Huawei, a new report has predicted. Pixabay

Noted analyst Ming-Chi Kuo has claimed that Apple may launch four 5G-enabled iPhones next year and while 5G-related components could raise the production costs of the devices, he believes that the iPhone maker will not significantly increase the price of 5G iPhones.

5G components are projected to raise the production cost of the new iPhones by anywhere from $30 to $100.

Kuo states that Apple intends to offset this additional cost by reducing its supply chain expenses, including dropping its upfront non-recurring engineering payment to suppliers of the redesigned metal chassis and frame for 5G iPhone, news portal iMore reported recently.

Kuo believes that Apple intends to bring this, along with other areas of external research and development, in house.

As per recent report, Apple is also reportedly planning to include a custom battery protection module with the iPhone 12, which is said to be almost 50 per cent smaller and thinner than the one being used in current and old iPhones.

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The impact of the launch of 5G Smartphones and services will fully reflect in 2020. Pixabay

The reduction in size could result in more free space for a slight increase in battery capacity,

J.P. Morgan analyst Samik Chatterjee believes that Apple will release a 5.4-inch iPhone, two 6.1-inch iPhones and one 6.7-inch iPhone with 5G connectivity in 2020.

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Chatterjee predicts the company may introduce two high-end models (one 6.1-inch and one 6.7-inch) with support for mmWave, as well as a triple-lens camera and “world facing” 3D sensing for improved Augmented Reality capabilities.

While, two low-end models (6.1-inch, 5.4-inch) will not have mmWave or World facing 3D sensing, and will have a dual-lens camera. (IANS)

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