Apple's record $64B quarter is more than 34 countries combined will earn this year

Posted:
in AAPL Investors edited October 2019
Apple hit yet another record for the September quarter results with $64 billion in revenue. Here's how that compares to previous quarters, earlier years, and how much money some countries and US states generate.


Revenue

"We concluded a groundbreaking fiscal 2019 with our highest Q4 revenue ever, fueled by accelerating growth from Services, Wearables and iPad," said Apple CEO Tim Cook on Wednesday. In reality, revenue is a little higher overall, but the net profit earned is still a little down year-on-year, to the tune of 3.1 percent.

For reference, Apple's $64 billion for the quarter is higher than the GDP of Tanzania, the 74th largest in the world based on 2019 IMF estimates, and is the equivalent combined GDP of the bottom 34 countries. The quarter's revenue would also put Apple 4th on Forbes' Billionaires list, between Bernard Arnault ($76 billion) and Carlos Slim Helu ($64 billion).

Gross Margin

The gross margin continues to be quite stable for the company, with a marginal change upwards in terms of percentage of gross revenue. If Apple continues its shift towards being a more Services-oriented company, the more lucrative and higher-margin Services will outweigh the lower margins of hardware and push the percentage further up.

Research and Development

While the cost of research and development has risen over the years, it's done so at a fairly consistent and steady rate. Though this may seem alarming given it isn't linked to revenue, Apple is still extremely efficient when it comes to R&D compared to its competitors.

Apple's R&D spend for the quarter is greater than the GDP of Sierra Leone ($3.998 billion).


Product Categories

It is no surprise that the lion's share of Apple's revenue stems from iPhone, but the growing bars of the other elements of Apple's empire is an encouraging sight, showing a diversification of its income streams. For year-on-year growth, while iPhone is down the most, with Mac dipping below 0%, iPad, Services, and Wearables, Home, and Accessories continue to see improvements.

iPhone

Apple revealed during the investor call the active install base of iPhone is at an all-time high in each geographical segment, with 83% of business buyers also intending to buy iPhones in the future. In the graphs, the growth in 2017 and 2018 has yet to be reattained, but the lower shrinkage in revenue is a good sign for iPhone sales, though Apple's policy of not revealing unit sales doesn't help in advising if it is from a higher average selling price or from shifting more units.

Apple's iPhone revenue for the quarter is the equivalent of the GDP of the bottom 26 countries in the world combined, and on a single country basis, is higher than the GDP of the Sudan ($31.4 billion).

iPad

The active install base for iPad is at an all-time high as well, with more than half new to iPad. There was a 17% growth in iPad Pro, showing an ongoing momentum of the range, while iPad revenue in total grew to $4.66 billion.


Mac

Again, an all-time high active install base was claimed for Mac, which earned $6.99 billion for the company, though this is a dip of 4.8% year-on-year. Apple said it was a "tough compare" to last year due to the release cycle, but still Mac generated its highest annual revenue over an entire fiscal year.

The MacBook Air was the best product over the quarter, with more than half of Mac purchasers new to the Mac.


Services

Services revenue brought in $12.5 billion, and with a gross margin of 61.4%, is also a highly profitable area for the company, with the arm being a 20% segment of the revenue mix, and 33% of the gross margin mix.

Double-digit growth of paid Services accounts in every market in the quarter, 450M accounts, versus 330M year-ago-quarter.

For context, Services' quarterly revenue is higher than the state spend of Rhode Island ($10.0 billion), or New Hampshire and Vermont combined ($6 billion each).

Wearables, Home, and Accessories

Wearables revenue produced Q4 records in every tracked market, with the segment earning $6.52 billion in the quarter and massive growth over last year's figures. AirPods, Beats, and Apple Watch are said to be the main growth areas for the arm.

The Wearables, Home, and Accessories category earned Apple in the quarter than the GDP of the Maldives ($5.7 billion).


Operating Segments

The Americas continue to be the most important region to Apple in terms of revenue, followed by Europe then Greater China. While there is little change in most regions, the Americas is seeing more growth than others, and could see even more in the next quarter's results.

China

A sensitive but important region for Apple, the revenue in Greater China is only slightly down year-on-year, following after multiple quarters of year-on-year shrinkage. This could be a sign Apple is becoming more stable in the market, and could enjoy more growth later on.

Cook noted a greater improvement in revenue trends in Greater China, with good reception for the iPhone 11 family but a "combination of things" helped with the turnaround.

Annual Results

As it is the fourth quarter, we now have the full-year results, which can be compared against previous years without having to look at the seasonality of quarters.

For the full year, the gross revenue is slightly down from 2018's figure, but it is still quite commendable, especially when looked in context to the last decade of results. While the year-on-year change isn't as massive as it once was, like in the early stages of the iPhone's lifespan, the sheer revenue earned puts Apple in quite a comfortable position.

Continuing the richness comparisons, Apple's full-year revenue of $260.174 billion puts it higher than the GDP of the Czech Republic ($246.9 billion), the 45th highest in the world, as well as equalling the bottom 56 countries of the GDP list combined. It is bigger than California's state budget of $214.8 billion, and is over 12 times the 2019 budget for NASA ($21.5 billion).

For the last five years of product category revenue, iPhone is obviously still a major factor, but the chart does highlight the resilience of the Mac market, the growth rate of Services, and that the Wearables, Home, and Accessories business is a useful element that could enjoy Services-level success down the line.

watto_cobra
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Comments

  • Reply 1 of 23
    spice-boyspice-boy Posts: 1,450member
    Apple should pay for every American's healthcare. 
  • Reply 2 of 23
    spice-boy said:
    Apple should pay for every American's healthcare. 
    Shouldn't that 'should' be 'could'?
    either way

    ROFL

    watto_cobra
  • Reply 3 of 23
    lkrupplkrupp Posts: 10,557member
    spice-boy said:
    Apple should pay for every American's healthcare. 
    Whatever. Last I read even Bernie Sanders predicts medicare for all would cost $40 trillion over a decade. Even evil, greedy, amoral, capitalist Apple doesn’t have that kind of dough. Nothing is free @spice-boy.
    edited October 2019 mwhitewatto_cobra
  • Reply 4 of 23
    StrangeDaysStrangeDays Posts: 12,932member
    spice-boy said:
    Apple should pay for every American's healthcare. 
    Er, no. We need to separate our healthcare from our employers. My healthcare should have nothing to do with who I work for, yet it does.

    But something must change. In today's episode of This Shit Is Out of Control -- I have plantar fasciitis from my physical activity so I visited the doc. He prescribed PT. At PT, the guy looked at my foot and had me do some stretches. The bill from the single PT session alone? $560 for -- $410 for the PT's "evaluation", and $150 for the stretching. My insurance took $250 off, leaving me with $310. What...a fucking...crock. 

    Our system is beyond broken. The prices from doctors and hospitals are fake, intended to be marked down via insurance provider negotiations. But even still the out-of-pocket is unreasonable for the non-wealthy and getting worse. I'm an enterprise software dev well into middle-class and this shit is too much. Our healthcare is completely broken, and we can thank the current system and the fat cat hospital & insurance executive class. Something has to change. 
    edited October 2019 spice-boyfastasleepSolimuthuk_vanalingamn2itivguywatto_cobra
  • Reply 5 of 23
    blastdoorblastdoor Posts: 3,375member
    When are writers going to learn the difference between revenue and income? 

    $64 billion was revenue, not income. 
    It will never happen.
    SpamSandwich
  • Reply 6 of 23
    blastdoorblastdoor Posts: 3,375member
    Also, 64 billion is almost 8 times the number of transistors in an A13. So just think about that! :-p
    SpamSandwichwatto_cobra
  • Reply 7 of 23
    auxioauxio Posts: 2,744member
    spice-boy said:
    Apple should pay for every American's healthcare. 
    Such a weirdly American point of view: expecting corporations to take care of everything.  I guess that's the logical place to turn when you don't want the government to be involved in anything for whatever reason.

    Our system is beyond broken. The prices from doctors and hospitals are fake, intended to be marked down via insurance provider negotiations. But even still the out-of-pocket is unreasonable for the non-wealthy and getting worse. I'm an enterprise software dev well into middle-class and this shit is too much. Our healthcare is completely broken, and we can thank the current system and the fat cat hospital & insurance executive class. Something has to change. 
    But hey, the free market will take care of everything right?  Supply/demand, competition, etc will lead to fair prices and more efficient systems than central planning/group coverage ever could.

    lkrupp said:
    Whatever. Last I read even Bernie Sanders predicts medicare for all would cost $40 trillion over a decade. Even evil, greedy, amoral, capitalist Apple doesn’t have that kind of dough. Nothing is free @spice-boy.
    Nothing is free @lkrupp , but having everyone working in their own direction for their own interests certainly costs a lot more.  A small number of doctors per clinic, one-off drug purchases vs larger ones, a prohibitively expensive education system limiting the number of doctors (affecting supply and demand), a half dozen layers of profit takers on every medical bill, etc.  All of these things inflate the prices in a private, unplanned system.
    edited October 2019 Soliwatto_cobra
  • Reply 8 of 23
    spice-boyspice-boy Posts: 1,450member
    To my libertarian friends here.... not everyone is employed such as the elderly, children and students. Small countries somehow are smarter than our big ass country as in they manage a healthcare system which takes care of the people living in it. For too long Americans have been told that a national healthcare system is impossible because it would cost too much...... Why are the wealthiest the least taxed? Why doesn't our taxes go towards helping us with medical bills? Nobody is asking for anything free except the wealthiest who get to make a fortune everyday yet don't even pay one penny on a dollar. Why do insurance companies make billions for doing nothing more than be a billing company, a middle man? My libertarian friends, if you lose your job, if your world comes crashing down as it happens to others daily you may finally understand that only looking out for #1 is a dead end. 
    roadracerkevSolimuthuk_vanalingamn2itivguysteveau
  • Reply 9 of 23
    spice-boy said:
    Apple should pay for every American's healthcare. 
    Er, no. We need to separate our healthcare from our employers. My healthcare should have nothing to do with who I work for, yet it does.

    But something must change. In today's episode of This Shit Is Out of Control -- I have plantar fasciitis from my physical activity so I visited the doc. He prescribed PT. At PT, the guy looked at my foot and had me do some stretches. The bill from the single PT session alone? $560 for -- $410 for the PT's "evaluation", and $150 for the stretching. My insurance took $250 off, leaving me with $310. What...a fucking...crock. 

    Our system is beyond broken. The prices from doctors and hospitals are fake, intended to be marked down via insurance provider negotiations. But even still the out-of-pocket is unreasonable for the non-wealthy and getting worse. I'm an enterprise software dev well into middle-class and this shit is too much. Our healthcare is completely broken, and we can thank the current system and the fat cat hospital & insurance executive class. Something has to change. 
    In New Zealand, I go to the doctor for the initial assessment and referral and it costs me (54 years old) NZ$16. The trip to the physiotherapist is another NZ$20. If it is a sporting or work related injury then ACC (a no-fault insurance scheme that covers everyone and is paid for as a percentage of income and deducted by your employer) pays for the first 5 sessions.
    spice-boyn2itivguywatto_cobrasteveau
  • Reply 10 of 23
    wizard69wizard69 Posts: 13,377member
    spice-boy said:
    Apple should pay for every American's healthcare. 
     Not every American deserves health care!!   This talking point is one of the more stupid things the left has come up with.  

    What Apple should be using that money for is transformative research, especially into energy!!!   Contrary to popular opinion “renewables” will never solve our energy needs.   
    watto_cobra
  • Reply 11 of 23
    wizard69wizard69 Posts: 13,377member
    lkrupp said:
    spice-boy said:
    Apple should pay for every American's healthcare. 
    Whatever. Last I read even Bernie Sanders predicts medicare for all would cost $40 trillion over a decade. Even evil, greedy, amoral, capitalist Apple doesn’t have that kind of dough. Nothing is free @spice-boy.
    The problem isn’t the cost it is the problems making things like health free,  care causes society.   We would be far better off to make it illegal to sell health care to people without a job.   That would have a dramatically more positive impact on society.   

    It should be perfectly obvious to anybody what the welfare state has done to certain segments of our culture.  We effectively have created multiple generations of violent and lazy individuals who spend their days trying to disrupt the very hand that feeds them.   
  • Reply 12 of 23
    SoliSoli Posts: 10,038member
    wizard69 said:
    spice-boy said:
    Apple should pay for every American's healthcare. 
     Not every American deserves health care!!   This talking point is one of the more stupid things the left has come up with.  

    What Apple should be using that money for is transformative research, especially into energy!!!   Contrary to popular opinion “renewables” will never solve our energy needs.   
    Which group(s) of fellow human beings do you believe shouldn't have a right to health care?
    spice-boyn2itivguywatto_cobraCarnage
  • Reply 13 of 23
    wizard69wizard69 Posts: 13,377member
    spice-boy said:
    Apple should pay for every American's healthcare. 
    Er, no. We need to separate our healthcare from our employers. My healthcare should have nothing to do with who I work for, yet it does.

    But something must change. In today's episode of This Shit Is Out of Control -- I have plantar fasciitis from my physical activity so I visited the doc. He prescribed PT. At PT, the guy looked at my foot and had me do some stretches. The bill from the single PT session alone? $560 for -- $410 for the PT's "evaluation", and $150 for the stretching. My insurance took $250 off, leaving me with $310. What...a fucking...crock. 

    Our system is beyond broken. The prices from doctors and hospitals are fake, intended to be marked down via insurance provider negotiations. But even still the out-of-pocket is unreasonable for the non-wealthy and getting worse. I'm an enterprise software dev well into middle-class and this shit is too much. Our healthcare is completely broken, and we can thank the current system and the fat cat hospital & insurance executive class. Something has to change. 
    There are two big problems here.   One is people expecting insurance to cover everything.   This takes the ability of the customer to have any impact on costs or the desire to even negotiate costs.   You can have an  impact on costs as the Amish do so but the rest of the USA just hands off the cost to somebody else.  

    The second part of the problem is the cost of insurance for malpractice and liability at hospitals.     For whatever reason we have this expectation that we will live forever in the USA.   If that doesn’t happen then somebody is to blame.   There is no doubt that there are bad doctors out there but that is no excuse for multi million dollar settlements.  

    Solve these two issues and you will have a big impact on costs.   Then you can focus on the other issues that add to the problem.  
    watto_cobra
  • Reply 14 of 23
    wizard69wizard69 Posts: 13,377member
    spice-boy said:
    To my libertarian friends here.... not everyone is employed such as the elderly, children and students. Small countries somehow are smarter than our big ass country as in they manage a healthcare system which takes care of the people living in it. For too long Americans have been told that a national healthcare system is impossible because it would cost too much...... Why are the wealthiest the least taxed? Why doesn't our taxes go towards helping us with medical bills? Nobody is asking for anything free except the wealthiest who get to make a fortune everyday yet don't even pay one penny on a dollar. Why do insurance companies make billions for doing nothing more than be a billing company, a middle man? My libertarian friends, if you lose your job, if your world comes crashing down as it happens to others daily you may finally understand that only looking out for #1 is a dead end. 
    It isn’t that it would cost to much but rather it isn’t in societies best interest to offer up free health care to the working population.   Children are the parents responsibility, if the family can’t afford their health care then maybe they should buy a few condoms.   As for retirement they already pay for their health care through years of work and the taxes associated with the elderly.  

    Your ignorance here is beyond belief, we are not looking out for number one, rather we have very deep concerns about the future of our country.    The number one thing we must address is, giving anything to people that don’t want to work, for free!!!!    If that means handing those on welfare are a ten pound hammer and entry to a stone quarry then that is what we must do.   Absolutely nothing should be handed out to the lazy.   It is perhaps the most disgusting thing we do with our tax dollars.  
    SpamSandwich
  • Reply 15 of 23
    SoliSoli Posts: 10,038member
    wizard69 said:
    spice-boy said:
    To my libertarian friends here.... not everyone is employed such as the elderly, children and students. Small countries somehow are smarter than our big ass country as in they manage a healthcare system which takes care of the people living in it. For too long Americans have been told that a national healthcare system is impossible because it would cost too much...... Why are the wealthiest the least taxed? Why doesn't our taxes go towards helping us with medical bills? Nobody is asking for anything free except the wealthiest who get to make a fortune everyday yet don't even pay one penny on a dollar. Why do insurance companies make billions for doing nothing more than be a billing company, a middle man? My libertarian friends, if you lose your job, if your world comes crashing down as it happens to others daily you may finally understand that only looking out for #1 is a dead end. 
    Children are the parents responsibility, if the family can’t afford their health care then maybe they should buy a few condoms.
    Apparently I'm as ignorant as spice-boy so could you explain to me how using a condom after a child is born is going to allow that child to get proper medical and mental health coverage? Why is this is the child'd fault that you'd make a child suffer because their parents failed to be responsible (which I'm sure you're also against because you're  probably also against education but fine with skyrocketing costs of college degrees that go no where).

    As for retirement they already pay for their health care through years of work and the taxes associated with the elderly. 

    That's some entitled bullshit. I bet you were one of the people that rallied against ObamaCare while claiming it's not needed because we have ACA.

    Your ignorance here is beyond belief, we are not looking out for number one, rather we have very deep concerns about the future of our country.

    You're only looking out for yourself and you have no concerns about the health of the nation. You believe that only lucky people—people like you—should only have opportunities. No one expects the paying field to ever be level—there are far too many variables for that—but to add additional obstacles without considering the longterm ramifications simply so you can feel more superior and successful is both callous and insecure.
    spice-boyn2itivguyCarnage
  • Reply 16 of 23
    "Children are the parents responsibility, if the family can’t afford their health care then maybe they should buy a few condoms."

    Peoples circumstances can change, literally in the blink of an eye. Life threatening illness, accident, a multitude of things. But to then say, 'oh well, you should have used a condom" is both patronising and callous. Calling people who struggle to pay, or outright cannot afford, adequate health care 'lazy', when many hold down multiple jobs probably shows what a tiny self-absorbed bubble you live in. The US healthcare system is a train wreck when viewed from the outside. In fact calling it a health care system at all is probably being generous. How can the supposedly richest country in the world have health care that costs 3x as much as anywhere else? Basic pharmaceuticals that in many instances costs hundreds more than in other first-world countries? Health care in the US is not about health care, its about making as much money as possible of every sick person.

    "Absolutely nothing should be handed out to the lazy.   It is perhaps the most disgusting thing we do with our tax dollars. "

    Well, I guess that depends on whether you think access to affordable health care is a basic human right. Which it is in any modern, functioning society.
    Solimuthuk_vanalingamspice-boyn2itivguywatto_cobraCarnage
  • Reply 17 of 23
    spice-boyspice-boy Posts: 1,450member
    wizard69 said:
    spice-boy said:
    Apple should pay for every American's healthcare. 
     Not every American deserves health care!!   This talking point is one of the more stupid things the left has come up with.  

    What Apple should be using that money for is transformative research, especially into energy!!!   Contrary to popular opinion “renewables” will never solve our energy needs.   
    Wow, hocus locus this wizard is living Not in real world. 😈💩
    Carnage
  • Reply 18 of 23
    spice-boyspice-boy Posts: 1,450member
    wizard69 said:
    lkrupp said:
    spice-boy said:
    Apple should pay for every American's healthcare. 
    Whatever. Last I read even Bernie Sanders predicts medicare for all would cost $40 trillion over a decade. Even evil, greedy, amoral, capitalist Apple doesn’t have that kind of dough. Nothing is free @spice-boy.
    The problem isn’t the cost it is the problems making things like health free,  care causes society.   We would be far better off to make it illegal to sell health care to people without a job.   That would have a dramatically more positive impact on society.   

    It should be perfectly obvious to anybody what the welfare state has done to certain segments of our culture.  We effectively have created multiple generations of violent and lazy individuals who spend their days trying to disrupt the very hand that feeds them.   
    I get it now wizard69 is really a Grand Wizard of the KKK. 
    Carnage
  • Reply 19 of 23
    spice-boyspice-boy Posts: 1,450member

    "Children are the parents responsibility, if the family can’t afford their health care then maybe they should buy a few condoms."

    Peoples circumstances can change, literally in the blink of an eye. Life threatening illness, accident, a multitude of things. But to then say, 'oh well, you should have used a condom" is both patronising and callous. Calling people who struggle to pay, or outright cannot afford, adequate health care 'lazy', when many hold down multiple jobs probably shows what a tiny self-absorbed bubble you live in. The US healthcare system is a train wreck when viewed from the outside. In fact calling it a health care system at all is probably being generous. How can the supposedly richest country in the world have health care that costs 3x as much as anywhere else? Basic pharmaceuticals that in many instances costs hundreds more than in other first-world countries? Health care in the US is not about health care, its about making as much money as possible of every sick person.

    "Absolutely nothing should be handed out to the lazy.   It is perhaps the most disgusting thing we do with our tax dollars. "

    Well, I guess that depends on whether you think access to affordable health care is a basic human right. Which it is in any modern, functioning society.
    I find it absolute shocking that being who are interested in technology, advances in science and engineering are so narrow minded when it comes to cultural and social topics. It's "let them eat cake" with a smothering or Ayn Rand with these guys. I can only assume the are emotionally stunted, without any empathy for their fellow humans beings and probably sit in soiled diapers all day. 
    roadracerkev
  • Reply 20 of 23
    I should’ve known a thread on Apple’s incredible monetary success would immediately evolve into a serious discussion about how to best STEAL their fairly earned profits. My god, America is over and done with because Leftists have literally mutated into full-blown Communists.
    watto_cobra
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