Apple’s recent foray into subscription services, such as Apple News+ and Apple TV+, is largely expected to help bolster an otherwise weak quarterly earnings report, which is set to publish on Tuesday, July 30.
Earnings are expected to drop due to poor sales performance over the quarter, according to analysts. Total sales were down last quarter as well, caused by declining iPhone sales, but Apple said more important sales numbers moving forward are those for iCloud, Apple Care warranties, Apple Music and Apple TV, as well as the soon-to-be Apple Card.
The Apple Card, a collaboration with Goldman Sachs, is set to launch to the public this summer. The company recently expanded testing of the credit card to its retail employees.
The company has also advanced Apple Pay this quarter. In June, it added support for users in the Netherlands and for Revolut users across Europe, and in May, it announced a partnership with New York City’s MTA to allow customers to use Apple Pay for public transportation.
Apple wearables – the Apple Watch, AirPods and Beats headphones – have also boosted the company’s revenue recently. Shipments of AirPods, as well as ear devices from other companies, have especially skyrocketed this year.
But the company is still striving to improve iPhone sales, and is planning to open a retail store in India to aid expansion in the country. The move is motivated by the decline in iPhone sales in China, one of the world’s biggest markets for mobile phones, but the company is still attempting to maintain a strong presence in China by expanding its service offerings. In July, Apple introduced a new program to help Chinese developers create new apps.
Apple also explored other areas of product expansion this quarter. On June 27, the company introduced OneDrop, a blood glucose monitor that works with the Apple Health app and the Apple Watch to track users’ blood sugar.
Just a day earlier, the company announced its acquisition of Drive.ai, an autonomous car startup. The acquisition demonstrates how Apple has continued to expand innovation this quarter. A report published in May revealed that research and development spending had increased to $13 billion for 2019, although CEO Tim Cook and investor Warren Buffett maintain that it is a consumer company.
Analysts are also waiting to see how Apple’s earnings report will be affected by the investigations conducted by the U.S. Department of Justice and the EU into antitrust allegations against the company, as well as trade tensions between the U.S. and China.
Apple will discuss its third-quarter earnings results in a conference call at 5:00 p.m. EST on Tuesday (July 30).