Apple announces that it will launch its own credit card in August, as iPhone sales continue to decline and the company is seeking to diversify its business model.
The announcement by CEO, Tim Cook, came on an income. Tuesday after the company's third-quarter revenue beat the forecasts, sending shares up 3% in afternoon trading. The tech company reported quarterly sales of $ 53.8 billion, up from its previous estimate of $ 53.39 billion.
Apple saw sales of services and laptops increase as it continued to expand beyond the phones, computers and other hardware that made it famous, increasing funding for services such as Apple Pay, Apple Care and Apple Music.
Apple saw total revenue fall the previous two quarters as iPhone sales fell. In the quarter, iPhone sales accounted for less than half of Apple revenue for the first time since 201
The Apple Card will include a user interface showing customers where each purchase was made and the transaction amount. It will divide purchases into categories, including entertainment, food and shopping, and include cashback incentives instead of a points system.
Wearables, including Apple Watch and Airpods, grew nearly 64% to $ 5.5 billion in the third quarter, surpassing the iPad in sales.
"This was our largest June quarter ever, driven by record revenue from services of all time, accelerating growth from wearables, strong performance from the iPad and Mac, and significant improvement in iPhone trends," Cook said.
Cook said during the call that the company invested in more domestic production and would continue to mount Mac Pro in the United States. Apple previously asked the Trump administration to exclude components of the devices from a 25% tariff imposed on China imports. Trump has tweeted that Apple would not get tariff relief and complete production in the United States.
“We made Mac Pro in the US; we will continue to do so, "Cook said. "We explain it and hope for a positive result."
Apple's earnings were announced following major shakes for the company in recent months. In July, Jony Ive, chief architect for well-known Apple products such as the iMac and iPhone, said he would leave the company after almost 30 years.
The report also comes as major technology companies face more scrutiny and the threat of regulation by US lawmakers. On July 23, the U.S. Department of Justice announced that it opened a broad antitrust review to major tech companies, including Facebook, Alphabet's Google, Amazon and Apple.
The investigation comes amid calls from lawmakers, including Democratic presidential candidates like Elizabeth Warren, for technology companies to face more scrutiny.
Meanwhile, Apple has identified itself as a privacy-minded technology company and announced an anonymous "sign in with Apple" sign-in system that the company has positioned as an alternative to Google and Facebook platforms that sell tracking information to advertisers.
"Battle lines have been drawn on how to provide Internet services, and as the iPhone becomes a smaller part of Apple's business, it will be important to win with its privacy positioning," said Kevin Joyner, director of planning and insight at analytics agency Croud.
Apple said it expected revenue in the fourth quarter to be between $ 61 billion and $ 64 billion.