In recent months, Apple has turned in less revenue from the sale of products and more from providing services. This is evident from the manufacturer’s quarterly figures. About 80 percent of revenue comes from hardware.
Hardware revenue declined from $52.3 billion to $51.5 billion, the quarterly figures show. The biggest drop was in iPhones. Turnover from this fell by almost 10 percent. Apple earned $33.3 billion from shipments of iPhones from late June to late September. That includes the first week and a half after the release of the iPhone 11 series. iPhone sales make up about half of Apple’s total sales.
Mac sales also declined, from $7.3 billion to about $7.0 billion. iPad shipments increased from $3.9 billion to $4.6 billion. Apple earned approximately $6.5 billion from Watch, HomePod and accessories sales. Service revenues grew nearly a quarter, from $10 billion to $12.5 billion, about 20 percent of total revenue. Apple is currently undergoing a transformation from a hardware company to a service company.
The increase in services, iPad and wearables drove Apple to its highest summer quarter revenue to date: $64 billion, up 2 percent from the same quarter last year. Operating income came in at $15.6 billion, down 3 percent from a year ago.