Apple to Announce Earnings Today Following First Revenue Warning in 16 Years, End of Unit Sales Reporting
Apple is set to report its earnings results for the first quarter of its 2019 fiscal year at 1:30 p.m. Pacific Time today.
The quarter began September 30, 2018 and ran through December 29, 2018, according to Apple's fiscal year accounting calendar.
Apple issued a rare earnings warning for the quarter on January 2, its first in over 16 years. The revised guidance is as follows:
- revenue of approximately $84 billion
- gross margin of approximately 38 percent
- op. ex. of approximately $8.7 billion
- other income/expense of approximately $550 million
- tax rate of approximately 16.5 percent before discrete items
Apple's initial guidance for the quarter on November 1:
- revenue between $89 billion and $93 billion
- gross margin between 38 percent and 38.5 percent
- op. ex. between $8.7 billion and $8.8 billion
- other income/expense of $300 million
- tax rate of approximately 16.5 percent before discrete items
Apple's guidance suggests it will report its second-best first quarter results ever, based on revenue, behind its 2018 record of $88.3 billion:
- 2015: $74.6 billion
- 2016: $75.9 billion
- 2017: $78.4 billion
- 2018: $88.3 billion
- 2019: $84 billion
What to Look For
- Apple's revised guidance suggests it will report its first holiday quarter sales decline since 2001, although it would still be the company's second-best quarter ever in terms of revenue.
- This is Apple's first earnings report in which it will not disclose iPhone, iPad, or Mac unit sales, a change it announced back on November 1. Apple's financial chief Luca Maestri said Apple may provide qualitative commentary about sales if necessary, so it will be interesting to see how the conference call and question-and-answer session play out.
- In a letter to shareholders on January 2, Apple CEO Tim Cook disclosed that Apple's revenue will be lower than its original guidance for the quarter, coming in at approximately $84 billion. Apple initially guided for revenue of $89 billion to $93 billion in the quarter on November 1. Look for any potential commentary surrounding the shortfall.
- Apple's guidance for its second quarter of fiscal 2019, which began December 30 and so far only encompasses the launch of new Smart Battery Cases for the iPhone XS, iPhone XS Max, and iPhone XR. It could eventually include new iPads, a new iPod touch, new AirPods, the AirPower, more. Analysts expect revenue of around $58.9 billion in the second quarter, compared to $61.1 billion in the year-ago quarter.
- Continued growth of Apple's Services category, including the App Store, Apple Music, iCloud, iTunes, Apple Pay, and AppleCare. Last quarter, Apple's services brought in a record $9.9 billion revenue. Apple has said it is still on target to double its fiscal 2016 services revenue by fiscal 2020. Analysts expect services revenue of around $11 billion in the quarter.
- Continued growth of Apple's Wearable, Home, and Accessories category, previously named Other Products, including the Apple Watch, Apple TV, HomePod, AirPods, Beats, iPod touch, and accessories—particularly as Apple diversifies revenue beyond the iPhone.
Apple's CEO Tim Cook and CFO Luca Maestri will discuss the company's earnings results on a conference call at 2:00 p.m. Pacific Time today. MacRumors will loosely transcribe the one-hour call as it occurs live.
Popular Stories
Apple's annual iPhone event is in the rearview mirror, but rumors suggest the company plans to release a handful of additional products before the year ends.
Will there be another Apple event this October? We discuss the possibility below.
Apple in October
Apple's most recent October events were in 2021 and 2023.
In 2022 and 2024, Apple did not host an October event. Instead, it...
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps.
Apple recently revealed that the feature would soon be available in North Dakota, and starting today, the feature has officially gone...
An apparent unboxing video for an unannounced iPad Pro with the M5 chip was uploaded to YouTube today by Russian channel Wylsacom.
The same YouTube account leaked the 14-inch MacBook Pro with the M4 chip before it was announced by Apple last year, so this is likely a legitimate leak.
Based on the box shown in the video, this appears to be a 13-inch iPad Pro with an M5 chip, 256GB of...
The United States Federal Communications Commission (FCC) has seemingly confirmed Apple's work on an updated version of the Vision Pro headset.
One of several documents the FCC shared today references an Apple-designed "Head Mounted Device" with a model number of A3416. An included image confirms the device is a Vision Pro.
The FCC's uploads are transmission tests, SAR test reports, and...
Apple today released iOS 26.0.1 and iPadOS 26.0.1, the first updates to the iOS 26 and iPadOS 26 operating systems that came out earlier this week.
The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update.
According to Apple's release notes for the update, iOS 26.0.1 addresses a bug that could cause aberrations in...
The United States Federal Communications Commission has confirmed Apple's work on a new version of the MacBook Pro and several other products, leaking details on the devices ahead of launch.
The FCC published documents that reference model numbers that do not correspond with existing devices. A3434, for example, references an unreleased MacBook Pro, while other numbers are likely for...
A handful of upcoming Apple products leaked yesterday, through a combination of YouTube videos out of Russia and U.S. Federal Communications Commission (FCC) documents that were released, despite Apple's confidentiality requests.
The leaked products include an iPad Pro with an M5 chip, as well as updated MacBook Pro and Apple Vision Pro models. All of these devices had already been rumored...
Apple's next MacBook Pro models will enter mass production soon, according to the latest information shared by Bloomberg's Mark Gurman.
In his Power On newsletter today, Gurman said he continues to believe the new MacBook Pro models will be released at some point between late 2025 and the first quarter of 2026, meaning they should be available to order by March at the latest.
Apple often...
Apple is preparing to release iOS 26.0.1, according to a private account on X with a proven track record of sharing information about future iOS versions.
The account initially said iOS 26.0.1 would have a build number of 23A350, but they now expect the update to have a build number of 23A355. This suggests that the software update will include more bug fixes or changes than initially...
Apple is developing an all-new operating system codenamed "Charismatic," according to Bloomberg's Mark Gurman.
Apple smart home hub concept based on rumors
This is likely Apple's long-rumored "homeOS" operating system.
In a report last month, Gurman said both Apple's rumored smart home hub in 2026 and tabletop robot in 2027 will run the new operating system. He said the software platform ...