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What Tim Cook Said about the ~17% Drop in the iPhone’s Q2 Revenue

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Apple’s revenue by geographical market

Apple’s (AAPL) fiscal 2019 second-quarter revenue in its Americas and Japan segments rose 3.0% and 1.2%, respectively. In contrast, its revenue in the Europe, Greater China, and Asia-Pacific segments fell.

Now, let’s take a look at its second-quarter product revenue in detail.

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Apple’s iPhone revenue in the second quarter

In the second quarter of fiscal 2019, Apple’s iPhone revenue fell 17.3% YoY (year-over-year) and 40.3% sequentially to $31.1 billion. The company’s iPhone sales accounted for ~53.5% of its total sales in the quarter compared to 61.7% in the first quarter of fiscal 2019 and 61.4% in the second quarter of fiscal 2018.

What Tim Cook said

During Apple’s second-quarter earnings conference call, CEO Tim Cook said that the iPhone “saw a better year-over-year performance in the last weeks of the quarter as compared to the full quarter or November and December.”

Cook mentioned recent iPhone pricing adjustments and the implementation of trade-in and financing programs in its retail stores as some of the key factors that improved Apple’s iPhone sales toward the end of the second quarter.

Apart from falling iPhone revenue, Apple’s Mac revenue also fell 4.6% YoY to $5.5 billion in the second quarter.

Other products revenue

On the positive side, Apple’s second-quarter revenue from other products, such as iPads, wearables, home, and accessories grew. While the company’s iPad revenue rose 21.6% YoY, its revenue from wearables, home, and accessories surged 30.0% YoY.

On March 31, AAPL made up ~10.14% of the Invesco QQQ Trust, Series 1 ETF’s (QQQ) total portfolio, while Microsoft (MSFT) made up ~10.24% of the fund.

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