What drove Apple growth in 2019? A look at Apple business growth for 2020

Apple’s business model can be broken down in two primary categories:

Products: the products lines comprise things like iPhone, iPad, Mac, and wearable, home and accessories devices (Apple Watch, AirPods and more)
Services: the services business comprises primarily: 1. Digital Content Stores and Streaming Services, comprising purchases on the App Store but also subscription services like Apple Music, Apple TV. 2. Other services comprise AppleCare+ (“AC+”) and the AppleCare Protection Plan, which are fee-based services that extend the coverage of phone support eligibility and hardware repairs. 3. Apple’s Cloud Services (iCloud), 4. Licensing where Apple licenses the use of certain of its intellectual property and provides other related services. And 5. Other services including Apple Arcade™, a game subscription service; Apple Card™, a co-branded credit card; Apple News+, a subscription news and magazine service; and Apple Pay, a cashless payment service.

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What drove Apple’s sales in 2019?

As pointed out on Apple’s financial statements for 2020:

iPhone net sales decreased during 2019 compared to 2018 due primarily to lower iPhone unit sales.
Mac net sales increased during 2019 compared to 2018 due primarily to higher net sales of MacBook Air, partially offset by lower net sales of MacBook® and MacBook Pro®
iPad net sales increased during 2019 compared to 2018 due primarily to higher net sales of iPad Pro.
Wearables, Home and Accessories net sales increased during 2019 compared to 2018 due primarily to higher net sales of AirPods and Apple Watch.
Services net sales increased during 2019 compared to 2018 due primarily to higher net sales from the App Store, licensing and AppleCare.

What countries drove Apple’s revenues?

As pointed out by Apple’s financial statements:

Americas net sales increased during 2019 compared to 2018 due primarily to higher Services and Wearables, Home and Accessories net sales, partially offset by lower iPhone net sales.
Europe net sales decreased during 2019 compared to 2018 due to lower iPhone net sales, partially offset by higher Wearables, Home and Accessories, and Services net sales. The weakness in foreign currencies relative to the U.S. dollar had a significant unfavorable impact on Europe net sales during 2019.
Greater China net sales decreased during 2019 compared to 2018 due primarily to lower iPhone net sales, partially offset by higher Wearables, Home and Accessories and Services net sales.
Japan net sales decreased during 2019 compared to 2018 due to lower iPhone net sales, partially offset by higher Services and Wearables, Home and Accessories net sales.
Rest of Asia Pacific net sales increased during 2019 compared to 2018 due primarily to higher Wearables, Home and Accessories and Services net sales, partially offset by lower iPhone net sales.

How is Apple business broken down between services and products?

While Apple is primarily a product company. It's also evolving toward the services side of the business (comprising App Store, licensing and AppleCare). Indeed, if we look at Apple's revenues, products still make up most of it, as of 2019 (over 70% of sales came from products). However, if we look at it from the gross margin perspective services had in 2019 63.7% gross margins compared to products' 32.2%, thus making services a more profitable side of the business. — While Apple is primarily a product company. It’s also evolving toward the services side of the business (comprising App Store, licensing and AppleCare). Indeed, if we look at Apple’s revenues, products still make up most of it, as of 2019 (over 70% of sales came from products). However, if we look at it from the gross margin perspective services had in 2019 63.7% gross margins compared to products’ 32.2%, thus making services a more profitable side of the business.

Source and references: Apple financial statements 2020

What was Apple's revenue in 2019?

In 2019 Apple made over $260 billion in revnues. Apple’s revenues primarily came from products (over 80%) like iPhone, iPad, Mac, with a fast growth in sales for Wearables, Home and Accessories, which represented the fastest growing segment in 2019 (41% growth), together with the services business.

Where does Apple's revenue come from?

Apple’s revenues as of 2019 still came primarily from iPhone sales (over 54%). Other products were Mac (about 10% of net sales), iPad (over 8% of net sales); Wearables, Home, Accessories Devices (over 9% of net sales); and Services which contributed almost 18% of the net sales.

What percent of Apple revenue is iPhone?

Apple’s revenues as of 2019 still came primarily from iPhone sales (over 54%). In 2019 sales of iPhones slew down, while sales of Wearables, Home, Accessories Devices grew substantially.

Is Apple consistently earning a profit?

As of 2019, Apple posted over $55 billion in net profits. This represented a 21% net margins (Apple’s revenues were over $260 billion in 2019). This makes Apple a profitable company. If we look at the gross margins, Apple products’ gross margins percentage was 32.2%, compared to services gross margins percentage of 63.7%. The decline in net profits in 2019 compared to 2018 was primarily due to a slow down in iPhone sales, partly offset by a fast growth in sales of Wearables, Home, Accessories Devices.