Apple today reported its Q1 2019 earnings, and for the first time, did not disclose unit sales for the iPhone, iPad, or Mac. In lieu of Apple’s official numbers, Strategy Analytics is out this evening with its look at iPhone performance during the quarter…
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According to estimates from Strategy Analytics, Apple shipped 65.9 million iPhones during fiscal Q1 2019 (calendar Q4 2018). That number is down 15 percent from the 77.3 million units Apple shipped during fiscal Q1 2018. Apple itself reported that iPhone revenue during the quarter was down 15 percent year-over-year.
Like Apple, Strategy Analytics attributes this fall in iPhone sales to longer ownership cycles, the lack of carrier subsidies, and slowing demand in emerging markets:
Global iPhone shipments fell sharply, due to high retail pricing, unfavorable foreign exchange rates, intense competition from rivals like Huawei, battery replacement programs driving longer ownership cycles, diminished carrier subsidies in some developed markets, and flagging demand in some emerging markets.
While Apple didn’t report its official unit sales number for iPhones in Q1 2019 today, the company did disclose a handful of other numbers. Apple said that the iPhone installed base hit 900 million units during the quarter. The company’s total installed base, including iPad and Mac, is now at 1.4 billion.
Apple CEO Tim Cook went into detail about Apple’s struggles in Q1 2019 during the earnings call, explaining that he does believe that price played a factor in lower-than-expected iPhone upgrades. Apple also today announced that it will lower the price of the iPhone in select countries to counteract currency fluctuations.
- Apple announces Q1 2019 revenue of $84.3b following revision down from $89-93b
- Live blog: Apple’s Q1 2019 earnings call
- Apple touts Services growth with 85M monthly active Apple News users, 50M paid Apple Music subscribers, 1.4 billion active devices, more
- Apple to lower iPhone prices in some international markets that were most impacted by currency fluctuations
- Tim Cook admits that higher iPhone prices are a ‘factor’ in declining upgrade rates
- Tim Cook says Apple will participate in the ‘breakdown’ of the cable bundle ‘in a variety of ways’