Time and again, I hear that Apple is expected to under-perform compared to their results in the previous year. And every time, I see Apple come up with a quarterly result that beats market estimates. The third quarter of 2019 was no different.

Apple posted a revenue of $53.8B, 1% up year-on-year(YoY), and a $10B profit. The revenue is the largest Apple has posted for Q3 earnings. They also declared a $0.77 quarterly dividend which to be paid out on August 15 to the shareholders on record on August 12.

On closer inspection of the Consolidated Financials, we understand that sales of products has slowed down. MacRumour reports that iPhone revenue is down 12%, but that is offset by the Mac, iPad, Services, and wearable technology.

More than anything else, this should indicate how we should look at Apple over the next few years. With iPhones getting expensive and fairly reliable, lesser people want to switch to the latest models. That is completely acceptable from a user’s viewpoint. At the same time, Apple is working hard to offset those reduced sales by ramping up their presence in services.

The future of Apple will be a mix of world-class products and reputable services provided to its customers. As we reach a technological zenith, Apple is doing its job in adapting to the situation and focussing on other revenue generation stream.

Link to Apple’s Press Release: Apple Reports Third Quarter Results