Apple yesterday reported its earnings results for the first quarter of the 2019 fiscal year. Apple's CEO Tim Cook and CFO Luca Maestri then went on a conference call with analysts to discuss the results. Key takeaways are below.
- Revenue of $84.3 billion. For financial details, see our earnings report coverage.
- 1.4 billion active devices at end of quarter.
- Apple Music now has over 50 million paying subscribers.
- App Store set single-day spending record: over $322 million on New Year's Day.
- 1.8 billion Apple Pay transactions in quarter, more than 2x vs. year-ago quarter.
- Target, Taco Bell, and Jack in the Box stores in U.S. will accept Apple Pay soon.
- Apple News now has over 85 million monthly active users.
- Apple News launching in Canada later this quarter. English and French.
- Apple's gross margin was 34.3% for hardware products and 62.8% for services.
- Apple remains on track to double its fiscal 2016 services revenue by 2020.
- Apple now has 360 million paid subscriptions across its services.
- Apple expects to surpass 500 million paid subscribers across its services in 2020.
- Wearables revenue driven by "amazing popularity" of Apple Watch and AirPods.
- Wearables category is "approaching the size of a Fortune 200 company."
- 506 Apple Stores across 22 regions at end of quarter.
- Apple ended the quarter with $245 billion in cash plus marketable securities.
- Apple to provide update on its capital return program in March earnings report.
- iPhone XR is best-selling iPhone model, then iPhone XS Max, then iPhone XS.
More coverage:
- Apple Lowering iPhone Prices in Some International Markets to Boost Sales
- Tim Cook: Apple Plans to Participate in the "Breakdown of the Cable Bundle" With AirPlay 2, Original Content, and More
- Tim Cook: "I Do Think Price is a Factor" in Declining iPhone Upgrades
- Tim Cook: Customers Holding on to Older iPhones "a Bit Longer" Than in Past
A replay of the conference call is available on Apple's website for a limited time.
