Apple no longer just about iPhones as revenue from other products becomes bigger than handset sales

Companies broadening business – with other products like AirPods as well as streaming services like Apple Music – are taking up a bigger and bigger part of results

Craig Federighi , Senior Vice President of Software Engineering at Apple, speaks about programming during the keynote address at the Apple World Wide Developers Conference (EPA/MONICA DAVEY)

Apple is less and less dependant on the iPhone as its plan to move away from relying on the handset is paying off.

The company's latest results show that sales of the iPhone are actually dropping, with billions of dollars of fewer sales than the same time last year.

But that drop was more than made up for by its increasing focus on other products, such as its Music streaming service and payments cloud storage.

The iPhone is still the company's biggest category, and is still worth tens of billions of dollars per quarter. But it now represents less than half of Apple's revenues, and is dropping.

Meanwhile, services – which includes the likes of Apple Music, iCloud and Apple Pay – along with the Mac, iPad, wearables and home and accessories all experienced growth.

The tech giant posted quarterly revenue of 53.8 billion dollars (£44.3 billion) in the three months to June 29, an increase of 1% from the same period in 2018.

Net profit fell from 11.5 billion dollars (£9.5 billion) last year, to 10 billion dollars (£8.3 billion).

The chief executive called the results "promising", highlighting the continued success of the services part of Apple, which took sales of 11.5 billion dollars (£9.4 billion).

The sector looks set to take a bigger chunk of Apple's growth in the future, with a new movie and TV streaming platform Apple TV+, the Apple Card, as well as a gaming subscription product Apple Arcade, all set to launch soon.

"This was our biggest June quarter ever - driven by all-time record revenue from services, accelerating growth from wearables, strong performance from iPad and Mac and significant improvement in iPhone trends," Mr Cook said.

"These results are promising across all our geographic segments, and we're confident about what's ahead. The balance of calendar 2019 will be an exciting period, with major launches on all of our platforms, new services and several new products."

Additional reporting by Press Association