Uploaded August 2019 | Updated September 2026, 3 weeks ago
SPONSOR: Go to curiositystream.com/vector and enter the promo code ‘vector’ to start your membership completely free for the first 31 days.
Despite the usual doom and gloom reporting that we got leading up to Apple’s Q3 2019 financial results — or stock manipulation depending on your point of view — the company managed to largely beat expectations.
But not escape the doom and gloom. Not entirely.
I get that there are people and press that are glass half empty and some, like myself, who tend towards glass half full. But, increasingly, all we’re seeing is glass smashed and all the tasty beverage spilled out all over the table, and that’s just a waste of good beverage.
iPhone revenue was down 12% year over year, but the active install base — those billion phones in our pockets, y’all — was up thanks to switches, upgraders, and new customers alike.
Mac and iPad were both up. Services revenue, which includes Apple Music and Apple Care, was up 13%. Wearables, which includes Apple Watch, AirPods, and Beats, was up 50%.
So, what’s the problem?
Well, depending on how you tilt your head and squint, factoring in seasonality and a myriad of other factors, for the first time since 2012, the iPhone accounted for less than half of Apple’s revenue.
And, where Apple was previously accused of being far too dependent on iPhone sales, now going beyond it is just as worrisome and troubling. The age of iPhone is over… or the post-iPhone as is just beginning.
Since then there’s been so much noise and so much dumb, I just really wanted to do something smart. So I got analyst Neil Cybart of Above Avalon on the line to help us sort it all out.
SUBSCRIBE: youtube.com/vectorshow?sub_confirmation=1
LINKS:
Neil on Twitter: twitter.com/neilcybart
Above Avalon: aboveavalon.com
Apple Results: apple.com/newsroom/2019/07/apple-reports-third-quarter-results
Apple Transcript: imore.com/apple-earnings-q3-2019
Apple Graphs: sixcolors.com/post/2019/07/apple-third-quarter-2019-results-and-charts
MORE:
Merch: standard.tv/vector
Gear: kit.com/reneritchie
Web: imore.com/vector
Podcast: applepodcasts.com/vector
Twitter: twitter.com/reneritchie
Instagram: instagram.com/reneritchie
SPONSOR: Go to curiositystream.com/vector and enter the promo code ‘vector’ to start your membership completely free for the first 31 days.
Despite the usual doom and gloom reporting that we got leading up to Apple’s Q3 2019 financial results — or stock manipulation depending on your point of view — the company managed to largely beat expectations.
But not escape the doom and gloom. Not entirely.
I get that there are people and press that are glass half empty and some, like myself, who tend towards glass half full. But, increasingly, all we’re seeing is glass smashed and all the tasty beverage spilled out all over the table, and that’s just a waste of good beverage.
iPhone revenue was down 12% year over year, but the active install base — those billion phones in our pockets, y’all — was up thanks to switches, upgraders, and new customers alike.
Mac and iPad were both up. Services revenue, which includes Apple Music and Apple Care, was up 13%. Wearables, which includes Apple Watch, AirPods, and Beats, was up 50%.
So, what’s the problem?
Well, depending on how you tilt your head and squint, factoring in seasonality and a myriad of other factors, for the first time since 2012, the iPhone accounted for less than half of Apple’s revenue.
And, where Apple was previously accused of being far too dependent on iPhone sales, now going beyond it is just as worrisome and troubling. The age of iPhone is over… or the post-iPhone as is just beginning.
Since then there’s been so much noise and so much dumb, I just really wanted to do something smart. So I got analyst Neil Cybart of Above Avalon on the line to help us sort it all out.
SUBSCRIBE: youtube.com/vectorshow?sub_confirmation=1
LINKS:
Neil on Twitter: twitter.com/neilcybart
Above Avalon: aboveavalon.com
Apple Results: apple.com/newsroom/2019/07/apple-reports-third-quarter-results
Apple Transcript: imore.com/apple-earnings-q3-2019
Apple Graphs: sixcolors.com/post/2019/07/apple-third-quarter-2019-results-and-charts
MORE:
Merch: standard.tv/vector
Gear: kit.com/reneritchie
Web: imore.com/vector
Podcast: applepodcasts.com/vector
Twitter: twitter.com/reneritchie
Instagram: instagram.com/reneritchie
