'Siri, what am I?'... Not an iPhone company. After years of dominating Apple's financial statements, a milestone was just hit: The iPhone now makes up less than 50% of Apple's sales for the first time since 2012. Big moment. Let it sink in. And the next iPhone coming this fall probably won't have the futuristic 5G internet-of-everything network (it's not coming until 2020 for Apple).
Apple is now a 2-part company... iPhones vs. everything else.
- iPhone sales fell 12%: ⬇️That number is way down because the price has surged to "should-I-just-get-a-laptop" levels, and people don't feel the need to iUpgrade as often.
- Everything else (especially accessories) jumped 17%: ⬆️ Mac, iPad, wearables, and services (Apple Music, Apple News+) are helping drive recurring revenues.
- Fun fact: That wearables biz? It includes AirPods and Apple Watch. And the whole wearables division is now the size of a Fortune 200 company.
Apple has 1 innovative new thing right now... (and we already kinda knew about it). The joint credit card with Goldman Sachs. We now know the titanium-clad (there's also a digital version) humble-brag collaboration will arrive in August. In Apple's world of slowing iPhones and growing services, it's creatively focused on privacy:
- There's no card number — it updates with a new one every transaction so even Goldman can't track your shopping.
- And it doesn't sell that data to anyone else.
- Plus, it's all 2-factor authenticated — aka finger or facial recognition.