Apple reported quarterly tax revenue, and as we used to see from the world's most valuable company, it was another excellent three months. Earnings and earnings per share were both (and above analysts' expectations), and the shares have seen a modest jump as investors jump back on the hype train.
But Apple's number tells an interesting story. iPhone sales were barely up compared with the same quarter last year, and 41.3 million units were sold, analysts' expectations of 41.79 million units were actually missing. Nobody seems to care about it because the average sales price on iPhone rose significantly (all thanks to iPhone X), so the cashmaker still roars forward as usual.
Stagnant iPhone sales are becoming an increasingly common story. The smartphone market globally is saturated, and without major breakthroughs every year, people keep on devices longer and longer. To become dominant at the top of the market, Apple has to find another mechanism to give its shareholders the profits they require.
Fortunately, a long undervalued Apple division comes to the forefront: Services. Tim Cook used an unusual amount of time focused on Apple's service service in the Q3 earnings conversation, and for good reason. Revenue from services was up to $ 9.54 billion, an increase of 31
Even impressive than revenue figures are the overall growth, and Apple's place in the market. Cook said that Apple Music has grown 50% year on year, confirming previous reports that Apple Music is now the largest streaming service in the United States. Then it's Apple Pay: Cook said that in Q3 2018 there were over one billion Apple Pay transactions, which Cook claimed is more than Square. In mobile transactions, Cook said that there were more mobile Apple Pay transactions as mobile PayPal transactions, although it is not clear where Venmo (owned by PayPal) is in that comparison.
Anyway, the picture is clear: Apple's services grow faster than ever, and it will continue that way. Cook said that "we could not be more excited about the products and services in our pipeline," which seems suspicious as a dream of a long-awaited Apple streaming television service.