Apple today updated its investor relations page to announce that it will share its earnings for the first fiscal quarter (fourth calendar quarter) of 2019 on Tuesday, January 29.

Along with the notice on when to expect earnings results, Apple today also announced revised guidance for the first fiscal quarter, which will make the January earnings call an interesting one.

appleinvestornews
Apple now expects revenue of $84 billion and gross margin of 38 percent, down from a guidance of $89 to $93 billion provided in November during the fourth quarter earnings call.

Apple CEO Tim Cook provided several reasons for the drop in an open letter to investors:

  • iPhone XS, XS Max, and XR launch timing compared to iPhone X timing in 2017
  • A strong U.S. dollar
  • Supply constraints on Apple Watch Series 4, iPad Pro, AirPods, and MacBook Air
  • Economic weakness in emerging markets, specifically China
  • Trade tensions with China
  • Lower than anticipated iPhone revenue, primarily in China
  • Weak iPhone upgrade numbers in some developed markets due to fewer carrier subsidies and low-priced battery replacements in 2018

The earnings call will provide more detailed information on Apple's revised guidance, though the January 29 earnings report will be the first without specific unit sales data for iPhone, iPad, and Mac, which Apple said it would stop providing back in November.

It marks a major change in the way that Apple's sales data is reported, making estimating iPhone, Mac, and iPad product sales more difficult. At the time the change was announced, Apple CFO Luca Maestri said that the company does not believe unit sales over the course of a 90-day period are an indicator of the underlying strength of its business.

Apple CEO Tim Cook today provided CNBC with a little more info on its decision, pointing out that the company never offered Apple Watch sales data because of the price range and the lack of value in sharing sales numbers. The iPhone, Cook says, is now in the same position.

It's sort of like you and I going to the grocery store and putting things in our cart and coming up to the register and the person saying 'how many you got'?

It doesn't make sense to add them together anymore because the price ranges are so wide. We didn't do it on watch from the beginning. We've never done it on iPod.

As we now step back from the phone, we now have phones being sold in emerging markets like the iPhone 6s for around $300 and so you've got a range from $300 to $1000 or in some cases over $1000 depending upon your selection of [storage]. And so this thing has lost its meaning.

Cook says that the sales data that it was providing to investors was conflating its value and its usefulness to determining the state of Apple's business.

According to Cook, Apple doesn't plan to never comment on units again and will provide data on unit sales if it will better explain results.

Apple is going to make additional disclosures, such as gross margin of services, a business that has grown significantly in recent years.

The quarterly earnings statement will be released at 1:30 PM Pacific/4:30 PM Eastern, with a conference call to discuss the report taking place at 2:00 PM Pacific/5:00 PM Eastern. MacRumors will provide coverage of both the earnings release and conference call on January 29.

Top Rated Comments

AutisticGuy Avatar
36 months ago
I know it sounds terrible, but I want a poor earnings report. I want Apple to get the message they are moving in the wrong direction.
Score: 26 Votes (Like | Disagree)
macfacts Avatar
36 months ago
Interesting that Tim did not list $1k iPhones as a reason for less earnings but listed a $30 discount on battery replacement as a reason for poor earnings.
Score: 23 Votes (Like | Disagree)
Jwil736 Avatar
36 months ago
* Weak iPhone upgrade numbers in some developed markets due to fewer carrier subsidies and low-priced battery replacements in 2018

Low-priced battery replacements more like the public found out the secret and no longer need a new phone every 2 years.
Score: 21 Votes (Like | Disagree)
dominiongamma Avatar
36 months ago
Hiding the bad iPhone numbers, Apple was all transparent when making profit on iPhones now they won’t disclose the bad numbers.
Score: 16 Votes (Like | Disagree)
macfacts Avatar
36 months ago
Looks like Tim knew all this when he announced no more numbers regarding iphones sold.
Score: 15 Votes (Like | Disagree)
simonmet Avatar
36 months ago
I think it’s funny if their strategy to grow revenue by pumping up prices and margins has backfired. People are getting fed up with greedy Tim.

I’d have bought a new Mac if the prices were 15-20% lower, but I held onto my cash because I don’t want to support Apple gouging their customers.
Score: 13 Votes (Like | Disagree)

Top Stories

affinity designer contour tool

Serif Updates Affinity Photo, Designer, and Publisher With New Tools and Functions

Thursday February 4, 2021 1:58 am PST by
Serif today announced across-the-board updates for its popular suite of Affinity creative apps, including Affinity Photo, Affinity Designer, and the Apple award-winning Affinity Publisher for Mac, all of which were among the first professional creative suites to be optimized for Apple's new M1 chip. "After another year which saw record numbers of people switching to Affinity, it's exciting to...
studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...
maroon5memories

Apple Collaborates With Maroon 5 to Add 'Memories' Song to Photos App

Wednesday September 25, 2019 12:02 pm PDT by
Apple has teamed up with Maroon 5 to add the group's new song "Memories" to the Memories feature in the Photos app, allowing it to be used for photo slide show creations, reports Billboard. "Memories" will be available as a soundtrack option for a limited time and it is available to iPhone and iPad users running the latest iOS 13 and iPadOS software. Memories in the Photos app are created ...
qualcomm snapdragon x60 5g

iPhone 13 Lineup Expected to Use Qualcomm's Snapdragon X60 Modem With Several 5G Improvements

Wednesday February 24, 2021 8:10 am PST by
Apple's next-generation iPhone 13 lineup will use Qualcomm's Snapdragon X60 5G modem, with Samsung to handle manufacturing of the chip, according to DigiTimes. Built on a 5nm process, the X60 packs higher power efficiency into a smaller footprint compared to the 7nm-based Snapdragon X55 modem used in iPhone 12 models, which could contribute to longer battery life. With the X60 modem, iPhone...
iPhone 13 Wi Fi 6E feature update

Wi-Fi 6E Explained: What It Could Mean for iPhone 13 and Beyond

Monday August 2, 2021 8:00 am PDT by
The iPhone 13 is widely expected to come with Wi-Fi 6E capabilities, and while it may seem rather nuanced to the average consumer, with only improved speeds and being "up to date" in the realm of Wi-Fi technology, it's actually a fairly significant improvement, laying the groundwork for much of what we know the future holds. To truly understand Wi-Fi 6E, MacRumors sat down for an exclusive...
iphone 12 colors 2021

iPhone 12 Colors: Deciding on The Right Color

Thursday November 5, 2020 8:35 am PST by
The iPhone 12 and iPhone 12 Pro arrived in October 2020 in a range of color options, with entirely new hues available on both devices, as well as some popular classics. The 12 and 12 Pro have different color choices, so if you have your heart set on a particular shade, you might not be able to get your preferred model in that color. iPhone 12 mini and iPhone 12 The iPhone 12 mini and iPhone...
m1 imac orange

New iMac Tidbits: Headphone Jack on Side, Ethernet Port on Power Adapter, Spatial Audio and WiFi 6 Support, No SD Card Slot

Wednesday April 21, 2021 6:38 am PDT by
Apple yesterday announced a completely redesigned 24-inch iMac with the M1 Apple silicon chip. The new iMac, the first major redesign of the Mac desktop computer since 2012, has several changes compared to the previous generation. In the aftermath of the event, a few new features and tidbits may have slipped under the radar, so we’ve compiled this list of some of the less-talked-about...
original iphone

Phil Schiller Says iPhone Was 'Earth-Shattering' Ten Years Ago and Remains 'Unmatched' Today

Monday January 9, 2017 7:15 am PST by
To commemorate the tenth anniversary of the iPhone, Apple marketing chief Phil Schiller sat down with tech journalist Steven Levy for a wide-ranging interview about the smartphone's past, present, and future. The report first reflects upon the iPhone's lack of support for third-party apps in its first year. The argument inside Apple was split between whether the iPhone should be a closed...
os x mountain lion macs 16x9 2

Apple Makes OS X Lion and Mountain Lion Free to Download

Wednesday June 30, 2021 12:19 pm PDT by
Apple recently dropped the $19.99 fee for OS X Lion and Mountain Lion, making the older Mac updates free to download, reports Macworld. Apple has kept OS X 10.7 Lion and OS X 10.8 Mountain Lion available for customers who have machines limited to the older software, but until recently, Apple was charging $19.99 to get download codes for the updates. As of last week, these updates no...