Apple earns $84.3B in revenue as iPhone earnings declined 15 percent in 2018 holiday quart...

Posted:
in AAPL Investors edited January 29
Apple's revenue for the first quarter of the 2019 fiscal year reached $84.3 billion, just as the company advised earlier in January in a revised down forecast, financial results revealed on Tuesday, with earnings per share increasing year-on-year to $4.18.




The reported revenue isn't as high as the record $88.3 billion reported last year, which was accompanied by an earnings per share of $3.89 at the time. This year's figures represent a year-on-year decline of 5 percent on revenue and an increase of 7.5 percent on earnings per share.

The company revealed iPhone revenue sat at $52 billion, down 15 percent year-over-year, but highlighted an overall growth in total revenue of 19 percent. In line with recent trends, Services revenue continued to skyrocket, with the segment touching an all-time high of $10.9 billion, up 19 percent from the year prior. Mac revenue hit an all-time high of $7.4 billion, growing 9 percent year-over-year, while the "wearables, home and accessories" category reached $7.3 billion, up 33 percent from 2018. Revenue from iPad also grew to $6.7 billion in the first quarter, up 17 percent year-over-year.

"While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter's results demonstrate that the underlying strength of our business runs deep and wide," said Apple CEO Tim Cook. "Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That's a great testament to the satisfaction and loyalty of our customers, and it's driving our Services business to new records thanks to our large and fast-growing ecosystem."

Apple had taken the unusual step of warning about the revenue miss in advance on January 2, anticipating revenue of around $84 billion instead of the original expected $89 billion to $93 billion range forecasted in November. Following that letter to investors from CEO Tim Cook, the stock was battered by investors while analysts expressed their concerns about the unexpected revenue drop.

Ahead of the release of the results, the Wall Street consensus tipped for an EPS of around $4.17, with analysts predicting relatively similar figures.

Quarterly Revenue and Net Profit


This quarter's results are the first under a new policy where Apple no longer provides sales figures for iPhone, Mac, and iPad on a regular basis. While Apple will continue to report sales growth, revenue, and guidance, it will not allow for the calculation of device average selling prices (ASPs) and other statistics used by observers to analyze the performance of the company and its products.

While the general reporting of unit sales is ceasing, Apple will still provide some information on its main product lines.

Apple is forecasting revenue between $55 billion and $59 billion for the second fiscal quarter of 2019, with gross margin estimated at between 37 percent and 38 percent. Operating expenses are expected to lie between between $8.5 billion and $8.6 billion, while a tax rate of approximately 17 percent is anticipated.
«1

Comments

  • Reply 1 of 21
    magman1979magman1979 Posts: 1,129member
    Reading these headlines, you'd think Apple is about to go bust next month:



    Wall Scum really are just that, scum of Humanity...
    watto_cobra
  • Reply 2 of 21
    I'd have thought they would have bought back shares more aggressively since they only bought back 8.7 billion dollars worth this quarter where the stock price was heavily discounted, but let's see what Maestri says during the conference call.
    edited January 29 JWSCbadmonkwatto_cobra
  • Reply 3 of 21
     
    Tim "Can't" Cook

    And, BTW, nice job on that upgrade that doesn't let a user know FaceTime or mirroring is being used! 

    So much for all that privacy you championed!

    <sarcasm intended>


  • Reply 4 of 21
    Reading these headlines, you'd think Apple is about to go bust next month:



    Wall Scum really are just that, scum of Humanity...
    No doomsday news here. Steady as she goes. Let the analysts dissect all the numbers and have their fun. I will collect my dividends, watch my shares appreciate and am looking forward to WWDC and the Fall product announcements.
    magman1979caladaniandayeronnScot1lolliverfastasleepPickUrPoisonlongpathwatto_cobra
  • Reply 5 of 21
    brucemcbrucemc Posts: 1,527member
    JayVee said:
    I'd have thought they would have bought back shares more aggressively since they only bought back 8.7 billion dollars worth this quarter where the stock price was heavily discounted, but let's see what Maestri says during the conference call.
    We shall see if they state why.  My view is that when Apple mgmt became aware of the sales shortfall, they stopped the share repurchases as the company was privy to significant information that the market did not have.  It would have been a magnet for lawsuits.  I expect Apple would have resumed purchasing after the Jan. 2nd disclosure.
    tmayJayVeefotoformatlolliverlongpathbadmonkwatto_cobra
  • Reply 6 of 21
    Looks like Tim has finally, directly admitted in a sentence full of many words but that says just one thing: iPhones are too expensive. 
    “When you look at foreign currencies and then particularly those markets that weakened over the last year those (iPhone price) increases were obviously more,” Cook told Reuters. “And so as we’ve gotten into January and assessed the macroeconomic condition in some of those markets we’ve decided to go back to more commensurate with what our local prices were a year ago in hopes of helping the sales in those areas.”

    https://www.reuters.com/article/us-apple-results/apple-sees-u-s-china-tensions-easing-services-business-growing-idUSKCN1PN2WF
    edited January 29
  • Reply 7 of 21
    ...
    edited January 29
  • Reply 8 of 21
    I wonder if Apple will ever break out services by category?
  • Reply 9 of 21
    I'm no expert, but in simply eyeballing the bar chart, it seems it's not Q1 2019 that was the outlier. The outlier was Q1 of 2018, when extraordinary growth occurred. Now, we are back in line with the growth curve that existed before then.
    tmayk2kwJFC_PAfastasleepMacProbadmonkwatto_cobra
  • Reply 10 of 21
    I have to laugh when Tim says one thing Apple is doing to improve results is the iPhone trade-in program and making it easier to pay for iPhones over time. So basically admitting the public thinks iPhones are too expensive so coming up with other ways to get people to buy phones without having to make them cheaper.
  • Reply 11 of 21
    chasmchasm Posts: 1,519member
    elijahg said:
    Looks like Tim has finally, directly admitted in a sentence full of many words but that says just one thing: iPhones are too expensive.
    No he's not -- at least, not in the way you infer.

    He's saying that iPhones jumped up too much in price due to foreign currency changes in developing countries (China and India primarily). Sales of the "too expensive" iPhones are actually up in all developed regions, so POOF goes your half-baked theory.

    I think Cook is being very wise to compensate for the currency differential in the short-term to bring prices in line with standard pricing, but it's not really a discount as you imply.

    I would suggest to you that premium smartphone prices (let's not forget iPhone is not the only expensive smartphone out there) are going to stay "high" and may in fact get higher (foldable RAZR, anyone?) -- but that this will be offset for consumers by a move (supported by Apple, at least) to hang on to your phone for longer. I'm already seeing this becoming the norm -- anecdotally most iPhones I see are either very <1 year old, or 3+ years old.
    tmayronnmacxpresslolliverelijahgwatto_cobra
  • Reply 12 of 21
    k2kwk2kw Posts: 1,725member
    elijahg said:
    Looks like Tim has finally, directly admitted in a sentence full of many words but that says just one thing: iPhones are too expensive. 
    “When you look at foreign currencies and then particularly those markets that weakened over the last year those (iPhone price) increases were obviously more,” Cook told Reuters. “And so as we’ve gotten into January and assessed the macroeconomic condition in some of those markets we’ve decided to go back to more commensurate with what our local prices were a year ago in hopes of helping the sales in those areas.”

    https://www.reuters.com/article/us-apple-results/apple-sees-u-s-china-tensions-easing-services-business-growing-idUSKCN1PN2WF
    I think he is also saying they have already cut prices in China to get sales up.  He should do that everywhere.  The XS and XSmax are overpriced by $100 and the XR by $50.
    elijahg
  • Reply 13 of 21
    JFC_PAJFC_PA Posts: 320member
    The company revealed iPhone revenue sat at $52 billion, down 15 percent year-over-year, but highlighted an overall growth in total revenue of 19 percent.”

    And a corporation has only ONE bottom line. 
    edited January 29
  • Reply 14 of 21
    chasmchasm Posts: 1,519member
    Leaving aside the China-economy-and-foreign-currency thing, here's a summary of the quarter:

    •Mac revenue at all time high, which infers all-time high sales.
    • iPad revenue up 17 percent, again inferring sales growth.
    • Services (and general revenue) up 19 percent yoy -- inferring increased ecosystem stickiness.
    • Wearables/(smart)Home/Accessories up 33 percent
    • Installed base of 1.4B devices, may hit 2B by end of 2020 -- more Apple users than ever before.
    • Revenue guidance for Q2 is again ~4-5 percent lower than last year -- inferring trade war/China economy woes may continue for another quarter before we see a recovery.

    Given the macroeconomic conditions trending lower worldwide out there (US/UK committing economic suicide, ripple effects of China economic could trigger recession) -- this is much better than I expected to be frank.
    edited January 29 Scot1tmaylolliverfastasleepMacPropalominebadmonkwatto_cobra
  • Reply 15 of 21
    chasm said:
    Leaving aside the China-economy-and-foreign-currency thing, here's a summary of the quarter:

    •Mac revenue at all time high, which infers all-time high sales.
    • iPad revenue up 17 percent, again inferring sales growth.
    • Services (and general revenue) up 19 percent yoy -- inferring increased ecosystem stickiness.
    • Wearables/(smart)Home/Accessories up 33 percent
    • Installed base of 1.4B devices, may hit 2B by end of 2020 -- more Apple users than ever before.
    • Revenue guidance for Q2 is again ~4-5 percent lower than last year -- inferring trade war/China economy woes may continue for another quarter before we see a recovery.

    Given the macroeconomic conditions trending lower worldwide out there (US/UK committing economic suicide, ripple effects of China economic could trigger recession) -- this is much better than I expected to be frank.
    I completely agree. This is way better than I expected. The revenue growth outside of the iPhone has almost offset the decline in sales for the iPhone. 
    dayetmaylolliverpalominebadmonkwatto_cobra
  • Reply 16 of 21
    avon b7avon b7 Posts: 3,770member
    chasm said:
    elijahg said:
    Looks like Tim has finally, directly admitted in a sentence full of many words but that says just one thing: iPhones are too expensive.
    No he's not -- at least, not in the way you infer.

    He's saying that iPhones jumped up too much in price due to foreign currency changes in developing countries (China and India primarily). Sales of the "too expensive" iPhones are actually up in all developed regions, so POOF goes your half-baked theory.

    I think Cook is being very wise to compensate for the currency differential in the short-term to bring prices in line with standard pricing, but it's not really a discount as you imply.

    I would suggest to you that premium smartphone prices (let's not forget iPhone is not the only expensive smartphone out there) are going to stay "high" and may in fact get higher (foldable RAZR, anyone?) -- but that this will be offset for consumers by a move (supported by Apple, at least) to hang on to your phone for longer. I'm already seeing this becoming the norm -- anecdotally most iPhones I see are either very <1 year old, or 3+ years old.
    Apple constantly adjusts pricing based on currency fluctuations. On this occasion, and in Tim Cook's own words, they miscalculated.

    Tim Cook is admitting that prices were too high. It doesn't matter 'why' as you can't set a price and then ignore currencies or sales taxes as if they have no impact on how your product will look in foreign markets.

    Pricing always has an impact on sales and year end pricing was reaching the ceilings of many consumers. That's why those big trade in deals were not limited to China and India.
    elijahg
  • Reply 17 of 21
    slurpyslurpy Posts: 5,142member
    bobroo said:
     
    Tim "Can't" Cook

    And, BTW, nice job on that upgrade that doesn't let a user know FaceTime or mirroring is being used! 

    So much for all that privacy you championed!

    <sarcasm intended>


    Oh, fuck off. Don't know why blatant troll accounts like yours take so long to get banned. You've had nothing to contribute except scummy, filth troll posts which never have anything to do with the thread topic. Get a damn life. 
    anantksundaramMacProbrucemcbadmonkwatto_cobra
  • Reply 18 of 21
    k2kwk2kw Posts: 1,725member
    bobroo said:
     
    Tim "Can't" Cook

    And, BTW, nice job on that upgrade that doesn't let a user know FaceTime or mirroring is being used! 

    So much for all that privacy you championed!

    <sarcasm intended>


    Cook deserves tough criticism for this quarter but what communication product with end to end encryption does google make?
    anantksundarambadmonk
  • Reply 19 of 21
    k2kwk2kw Posts: 1,725member
    I have to laugh when Tim says one thing Apple is doing to improve results is the iPhone trade-in program and making it easier to pay for iPhones over time. So basically admitting the public thinks iPhones are too expensive so coming up with other ways to get people to buy phones without having to make them cheaper.
    Everyone is trying to blame it on the currency exchange rate, but isn't that a little bit of a cop-out.
    Most of the iPhone is built in China and Apple buys the assembled iPhones from FoxConn so that should result in a wash on most of the phone (or atleast half).
  • Reply 20 of 21
    brucemcbrucemc Posts: 1,527member
    I have to laugh when Tim says one thing Apple is doing to improve results is the iPhone trade-in program and making it easier to pay for iPhones over time. So basically admitting the public thinks iPhones are too expensive so coming up with other ways to get people to buy phones without having to make them cheaper.
    I have to laugh at your predictably whiny posts...

    What do you do again...??
    macxpresswatto_cobra
Sign In or Register to comment.