Mixed news for Apple

Record sales but pace of growth falls away

APPLE has posted record Australian sales but its pace of growth has fallen sharply as consumers hold on to their mobile phones for longer or shift to rival handsets.

The uptake of services such as Apple music and TV also accounted for two-thirds of the sales growth the local arm of the US technology giant posted over the past year.

In all, Apple raked in a record $9.39 billion in sales from Aussie consumers in the year to September 28, its latest accounts show.

The iPhone maker’s Australian revenue rose 3.3 per cent, or $307 million.

That is a sharp slowdown from the 13 per cent lift – or $1 billion in extra sales – Apple Australia notched up in the same period in 2018 as it launched the iPhone 8 and X models.

Apple Australia’s latest accounts include close to a full year of sales of its iPhone XR model and early numbers from its new iPhone 11 series which hit shelves on September 11.

Online retailer Kogan last year blamed a marked slowdown in the take-up of Apple products for a hit to its sales.

The iPhone remains Apple’s single most important product, accounting for more than half of its global revenues.

But its recent models – and their hefty price tags – have failed to generate the same level of enthusiasm among shoppers as earlier devices.

The company’s Australian accounts show its services unit, which covers music, TV and

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Services accounted for about $200 million of Apple Australia’s total sales lift in 2019.

The segment now accounts for 15.1 per cent of all sales, up from 12.7 per cent in 2018.

A slowdown in local sales growth did not stop Apple from posting a healthy jump in net profit, which surged by close to 25 per cent to $286.7 million.

The local arm also paid its US parent company a $267 million dividend.

Despite the profit hike, Apple Australia booked a corporate income tax expense of $120.9 million in 2019.

That was lower than the $164.1 million it booked in 2018 as it made use of deferred tax income.

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