Apple earns $53.8B in revenue in record-setting third quarter

Posted:
in AAPL Investors edited July 31
Apple earned $53.8 billion in revenue during its third fiscal quarter of 2019, according to financial results the iPhone maker revealed on Tuesday, with services again making big gains to reach another all-time high.




For the quarter ending in June, Apple's revenue of $53.8 billion is up 1% year-on-year from the same quarter in 2018, which saw revenue of $53.3 billion. As expected, the earnings are within the company's forecasted range of between $52.5 billion and $54.5 billion issued in the Q2 results, and is relatively in line with the predictions of Wall Street analysts.

Apple quarterly revenue and gross margin graph


"This was our biggest June quarter ever -- driven by all-time record revenue from Services, accelerating growth from Wearables, strong performance from iPad and Mac and significant improvement in iPhone trends," said Apple CEO Tim Cook. "These results are promising across all our geographic segments, and we're confident about what's ahead. The balance of calendar 2019 will be an exciting period, with major launches on all of our platforms, new services and several new products."

Revenue derived from iPhone sales is $26 billion, down from $29.9 billion for the quarter last year, though due to Apple's change in reporting to no longer report units shipped, it is unclear if it is from a change in shipment quantities or from an altered average selling price. The iPad earned $5 billion, up from $4.74 billion a year ago, while Mac revenue of $5.8 billion is up from $5.3 billion seen in quarter three 2018.

Apple product category revenue graph


The "Wearable, Home, and Accessories" category reports net sales of $5.2 billion, up significantly from $3.7 billion one year prior. Services, a very reliable growth area for Apple, brought in $11.5 billion in revenue, up from $9.6 billion for the same quarter last year.

For the fourth quarter, Apple's forecast is for revenue between $61 billion and $64 billion, with a gross margin between 37.5% and 38.5%. Operating expenses for the period are anticipated to be between $8.7 billion and $8.8 billion.
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Comments

  • Reply 1 of 24
    MacProMacPro Posts: 18,359member
    Watch this get spun into AppleDoomed News!  Hardly a 'one-trick pony' after all eh?
    edited July 30 jahbladetmaySpamSandwichStrangeDayswatto_cobrabshankAppleExposedjony0
  • Reply 2 of 24
    Simon.CSimon.C Posts: 1unconfirmed, member
    Nice work Apple 
    AlexMorellowatto_cobrabshankAppleExposed
  • Reply 3 of 24
    seanismorrisseanismorris Posts: 1,044member
    The balance of calendar 2019 will be an exciting period, with major launches on all of our platforms, new services and several new products."

    That’s an interesting statement... most “platforms” I think have been updated recently.

    I’m thinking they’re saying software rather than hardware.  Looking forward to iPad OS...

    Maybe AI will get us a breakdown of the products that have been updated recently, and ones that might reasonably get an update in 2019.
    watto_cobraAppleExposed
  • Reply 4 of 24
    SydNSydN Posts: 6member
    Still need to balance iPhone prices! It at least launch some new entry level models in range of googles Pixel 3 a model ! Otherwise in long term you’ll loose more iPhone sales and iOS user base will shrink!
    elijahg
  • Reply 5 of 24
    seanismorrisseanismorris Posts: 1,044member
    MacPro said:
    Watch this get spun into AppleDoomed News!  Hardly a 'one-trick pony' after all eh?
    “Revenue derived from iPhone sales is $26 billion, down from $29.9 billion for the quarter last year”

    Apple is Dooomed!  ; ) That’s a significant drop though...

    Apple is getting more aggressive elsewhere to make up for it... that’s good for consumers.


    elijahg
  • Reply 6 of 24
    1348513485 Posts: 63member
    I can hardly wait until the knuckleheads at Forbes and Business Insider try to twist this. Reality bites.
    mark fearingAlexMorellowatto_cobra
  • Reply 7 of 24
    rogifan_newrogifan_new Posts: 4,153member
    Apple Watch doing very well. Improvements in China too.
    watto_cobraAppleExposed
  • Reply 8 of 24
    entropysentropys Posts: 1,811member
    Wearables would be airpods as well as Apple Watch. Absolutely stellar growth there.
    also, look what happens when you start updating macs! Growth in sales!
    i hope Apple is getting the message on the current iPhone mix/pricing. 
    AlexMorellowatto_cobra
  • Reply 9 of 24
    hexclockhexclock Posts: 583member
    AAPL up over 4% after hours. 
    SpamSandwichwatto_cobra
  • Reply 10 of 24
    elijahgelijahg Posts: 989member
    I'm glad the non-iPhone revenue is up, that's good news for Apple's other products that're not in the limelight (Mac mainly). The iPhone revenue drop only reaffirms that iPhones are too expensive. Maybe Cook will finally accept this? Unfortunately I doubt it somehow.
  • Reply 11 of 24
    anantksundaramanantksundaram Posts: 19,302member
    Stock doing nicely, thank you.

    Apple beat expectations on both iPhones and Services comfortably.
    StrangeDayswatto_cobra
  • Reply 12 of 24
    MacProMacPro Posts: 18,359member
    MacPro said:
    Watch this get spun into AppleDoomed News!  Hardly a 'one-trick pony' after all eh?
    “Revenue derived from iPhone sales is $26 billion, down from $29.9 billion for the quarter last year”

    Apple is Dooomed!  ; ) That’s a significant drop though...

    Apple is getting more aggressive elsewhere to make up for it... that’s good for consumers.


     All we have heard is "iPhone sales represent too much of the profits",  now it's "A significant drop!" Many news outlets are leading with that as a negative.  Truth is that means other sectors are growing!  That's not just good its f****g awesome.
    StrangeDaysRonnnieOWgkruegerwatto_cobrabshankAppleExposed
  • Reply 13 of 24
    eightzeroeightzero Posts: 2,446member
    MacPro said:
    MacPro said:
    Watch this get spun into AppleDoomed News!  Hardly a 'one-trick pony' after all eh?
    “Revenue derived from iPhone sales is $26 billion, down from $29.9 billion for the quarter last year”

    Apple is Dooomed!  ; ) That’s a significant drop though...

    Apple is getting more aggressive elsewhere to make up for it... that’s good for consumers.


     All we have heard is "iPhone sales represent too much of the profits",  now it's "A significant drop!" Many news outlets are leading with that as a negative.  Truth is that means other sectors are growing!  That's not just good its f****g awesome.
    Well...a $3B drop in quarterly revenue for a flagship product is never good. What would be good is that profit by product becomes more equalized without a drop from any one source.
    entropyswatto_cobraAppleExposed
  • Reply 14 of 24
    eightzero said:
    MacPro said:
    MacPro said:
    Watch this get spun into AppleDoomed News!  Hardly a 'one-trick pony' after all eh?
    “Revenue derived from iPhone sales is $26 billion, down from $29.9 billion for the quarter last year”

    Apple is Dooomed!  ; ) That’s a significant drop though...

    Apple is getting more aggressive elsewhere to make up for it... that’s good for consumers.


     All we have heard is "iPhone sales represent too much of the profits",  now it's "A significant drop!" Many news outlets are leading with that as a negative.  Truth is that means other sectors are growing!  That's not just good its f****g awesome.
    Well...a $3B drop in quarterly revenue for a flagship product is never good. What would be good is that profit by product becomes more equalized without a drop from any one source.
    Depends on how many billions that product is making. Where it is in life cycle. And what other products, software, services, and hardware are trending. Go back and watch the iPhone launch and see what Steve Jobs was going to be happy with in the mobile phone space. 
    StrangeDayswatto_cobrabshankAppleExposed
  • Reply 15 of 24
    StrangeDaysStrangeDays Posts: 8,298member
    SydN said:
    Still need to balance iPhone prices! It at least launch some new entry level models in range of googles Pixel 3 a model ! Otherwise in long term you’ll loose more iPhone sales and iOS user base will shrink!
    Quick, email Cook!
    watto_cobrabaconstangAppleExposed
  • Reply 16 of 24
    robin huberrobin huber Posts: 3,275member
    And of course the stock drops. Some things never change. 
    watto_cobra
  • Reply 17 of 24
    SpamSandwichSpamSandwich Posts: 31,332member
    And of course the stock drops. Some things never change. 
    The stock is up +4% after hours. That’s going to be a nice rise tomorrow.
    watto_cobramwhite
  • Reply 18 of 24
    macxpressmacxpress Posts: 4,934member
    SydN said:
    Still need to balance iPhone prices! It at least launch some new entry level models in range of googles Pixel 3 a model ! Otherwise in long term you’ll loose more iPhone sales and iOS user base will shrink!
    Thank you armchair executive. Leave running a multi-billion company to the people who actually do it and make massive profits. 
    watto_cobramwhiteAppleExposedBart Y
  • Reply 19 of 24
    MacPro said:
    Watch this get spun into AppleDoomed News!  Hardly a 'one-trick pony' after all eh?
    “Revenue derived from iPhone sales is $26 billion, down from $29.9 billion for the quarter last year”

    Apple is Dooomed!  ; ) That’s a significant drop though...

    Apple is getting more aggressive elsewhere to make up for it... that’s good for consumers.


    Apple's revenue of $53.8 billion is up 1% year-on-year”. That’s an increase. 
    SpamSandwichwatto_cobra
  • Reply 20 of 24
    macplusplusmacplusplus Posts: 1,888member
    A quick glance at the last graph (iPhone) shows that Q3 is half of Q1 in both 2018 and 2019. Actually this is a good thing for Q3, It didn’t go below (Q1)/2. B) 

    2018 Q1 points to a boom created by the newly introduced X. It is natural that sales normalize the following year since the next model is being taken as incremental.

    Whatever, I can’t see in that graph anything that would alert Apple to significantly modify the current iPhone product range. That drop (if real) can be compensated by routine sales and marketing mechanisms.
    edited July 30 watto_cobra
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