By Wares January 30, 2019 VR, computing & games

Services continue to grow but Apple takes hardware-driven hits to both revenue and Gross Margin in its December quarter.

Apple just released its Q1 FY2019 figures for the quarter ending 29 December, revealing quarterly drops to both its top and bottom lines for the first time in many years.

Overall revenue was negative 5%, informed mainly by negative iPhone revenues (-15%, probably mainly driven by the Chinese market), but revenue growth was seen from Mac (+9%) and Wearables, Home & Accessories (+33%!), with revenue from iPad also growing strongly (+17%).

Service revenue also continues to grow apace (+19% for the quarter) and is now close to 15% of total net sales, up from 11.5% in the same period a year ago.

Apple's Gross Margin at 38% was also negative (-5.6%).

Comprising the likes of Apple Pay, Apple Music and iCloud storage, Services' Gross Margin is by comparison mighty impressive (almost 63%).

In terms of the regions, the Americas was the only territory to see real revenue growth (+5%) while Greater China, Apple's third largest market, showed the biggest negative (-26.7%).

See the detailed numbers for Apple's Q1 FY2019 here.

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