Apple’s iPhone Sales Drop Sharply, But Stock Jumps on Record Services Revenue

Shares increase 5% after-hours, putting the company on the verge of reclaiming a $1 trillion valuation

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Apple didn’t make as much as it did last year off its trademark device — and Wall Street doesn’t seem to mind one bit.

The tech giant reported iPhone revenue dropped 17% year-over-year when it shared its second quarter financials on Tuesday afternoon, but Apple’s stock still spiked in after-hours trading, after the company posted a record $11.5 billion in Services revenue.

For the three months ended March 30, Apple reported revenue of $58 billion, slightly edging analyst estimates of $57.37 billion. Its earnings of $2.46 per share also beat analyst projections of $2.36 EPS. Revenue decreased 5% year-over-year.

Apple stopped sharing how many iPhones it sold earlier this year, but the company still reports quarterly revenue from the device.

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