Apple Watch, AirPods and services are Apple’s big winners, despite dimming iPhone

The iPhone sales dipped, despite iPhone 11 buzz, but AirPods and Watch propelled stronger Apple sales.

Apple’s got a busy holiday season this year. In the past month, it’s announced the new $699 iPhone and $999 iPhone Pro, it launched the $4.99 per month Apple Arcade subscription package and on Friday it’ll be launching its highly anticipated $4.99 Apple TV Plus video service. Add to all that the new $249 AirPods Proheadphones Apple also announced this week, and there’s a lot of new stuff from the Cupertino tech giant to choose from.

Now, the question is whether anyone will buy them all.

So far, signs point to “mostly.”

Apple on Wednesday said it rung up $64 billion in sales in the three months ended Sept. 28, up nearly 2% from the same time last year. It was also above the $62.9 billion analysts on average had been expecting, according to surveys from Thomson Reuters.

“We concluded a groundbreaking fiscal 2019 with our highest Q4 revenue ever, fueled by accelerating growth from Services, Wearables and iPad,” said Tim Cook, Apple’s CEO, in a statement. He added he was “very optimistic about what the holiday quarter has in store.”

That was enough to help push up Apple’s shares more than 2% to $248.55 apiece in after-hours trading. 

Much of Apple’s shine during the quarter came from wearables like the $399 Apple Watch and $159 AirPods, as well as services like its iCloud photo and document storage and its new Apple Arcade. The iPhone, meanwhile, didn’t perform as well.

Sales of the iPhone headset, which typically represents about half of Apple’s revenue and a large share of its profits, fell nearly 10% to about $33 billion. Apple said customer interest in the iPhone 11, which was released on Sept. 20 (8 days before the end of the fiscal quarter) was high, though.

Overall profits fell to $13.7 billion, down about 3% from last year. That comes out to $3.03 per share, above the $2.84 analysts had been expecting.

For the holiday quarter, Apple said it expects revenue between $85.5 billion and $89.5 billion, with a midpoint roughly in line with average analyst estimates of $86.9 billion.

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