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'earnings' Articles

Tim Cook: Apple Saw 'Great Improvement' in China in Q3 2019

Thanks to trade-in programs and other promotions, Apple saw significant improvement in iPhone sales in China, Apple CEO Tim Cook said today during today's earnings call covering the third fiscal quarter of 2019. Cook said that Apple saw "great improvement" in China, returning to growth in constant currency in Greater China with improvements in year-over-year iPhone performance compared to the last two quarters. We're happy with our performance across the board, including a return to growth in mainland China. We accomplished this despite strong headwinds from foreign exchange, which impacted the top-line growth rate by 300 points compared to a year ago, equivalent to $1.5 billion of revenue. In constant currency, our revenue grew in all five of our geographic segments.Cook went on to say that Apple is "encouraged" by the results of the initiatives it launched earlier this year, with the company seeing a strong customer response to in-store trade-in and financing programs. iPhone in retail and online stores returned to growth on a year-over-year basis in June, said Cook, and the active installed base of iPhone users reached a new all-time high. Despite the improvements, iPhone revenue was down during the quarter. The iPhone brought in $26 billion, down from $29.5 billion in the third quarter of 2018. For the first time, the iPhone was responsible for less than half of Apple's revenue, with services and wearables making up for the decline in sales. Cook said that later this year, Apple has "several new products" that it can't wait to share with customers, without

Apple's Services Revenue Hits New All-Time High of $11.46 Billion

Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, AppleCare, and more, has become an important revenue driver for Apple amid stagnating iPhone sales, leading Apple to focus more effort on its services category. In the third fiscal quarter of 2019, Apple's services segment brought in $11.46 billion, up from $10.17 billion in the year-ago quarter and $11.45 billion in the second quarter of 2019. Apple set new all-time records for AppleCare, Apple Music, App Store search ads, and more, along with a new third-quarter revenue record for the App Store. Apple saw double digit services revenue in all five geographical segments. Apple surpassed 420 million paid subscribers in the third quarter, and Apple CEO Tim Cook said that Apple is well on its way to reaching its goal of reaching $14 billion in services revenue per quarter by 2020. Apple Pay is now in 47 markets and in the June quarter, started adding more new users than PayPal and monthly transaction volume is growing 4x as fast. Apple is starting to roll out NYC transit support for Apple Pay in the United States, and Chicago will follow later this year. Apple in March announced new services that will continue to boost services revenue in the future. Apple News+, a $9.99 per month service that provides unlimited access to more than 200 magazines, has already launched, and later this year Apple is introducing Apple Arcade, Apple TV+, and a new Apple Card credit

Apple Reports Q3 2019 Results: $10B Profit on $53.8B Revenue, Highest June Quarter Revenue Ever

Apple today announced financial results for the third fiscal quarter of 2019, which corresponds to the second calendar quarter of the year. For the quarter, Apple posted revenue of $53.8 billion and net quarterly profit of $10.0 billion, or $2.18 per diluted share, compared to revenue of $53.3 billion and net quarterly profit of $11.5 billion, or $2.34 per diluted share, in the year-ago quarter. The revenue figure was Apple's highest ever for the June quarter, just beating out the year-ago quarter, although profits dipped on lower margins. Gross margin for the quarter was 37.6 percent compared to 38.3 percent in the year-ago quarter, with international sales accounting for 59 percent of revenue. Apple also declared a quarterly dividend payment of $0.77 per share, payable on August 15 to shareholders of record as of August 12. This is the third quarter since Apple changed the way it reports its results, with the company no longer providing unit sales data for iPhone, iPad, and Mac. As a result, Apple is only providing revenue figures for its various segments, leaving analysts to estimate unit sales based on their own calculations.“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 Tim Cook, Apple’s CEO. “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

Apple Pay Coming to NYC Transit System in Early Summer

Apple CEO Tim Cook today shared some details on upcoming Apple Pay providers during Apple's earnings call covering the second fiscal quarter of 2019. Ticketmaster is set to begin accepting Apple Pay for ticket purchases on the web in the near future, and more than 50 entertainment and sporting event venues are launching contactless tickets this year, including most NFL stadiums. New York's MTA transit system is piloting Apple Pay on a couple of lines at the current time, and Cook says Apple Pay will roll out to the rest of the lines in "early summer," which is new information. Cook believes the introduction of Apple Pay support for transit systems across the U.S. will bring in even more Apple Pay customers who don't currently use the payments service. Apple Pay transaction more than doubled year over year, and Apple is on track to reach 10 billion transactions in 2019. Apple Pay is available in 30 markets, which Apple expects to expand to 40 markets by the end of the

Apple's Wearables Category Sets New Q2 Revenue Record of $5.1 Billion, Cook Says AirPods Are a 'Cultural Phenomenon'

Apple CFO Luca Maestri today said that Apple's Wearables, Home, and Accessories category, which includes devices like the AirPods and the Apple Watch, set a new March quarter revenue record of $5.1 billion. According to Maestri, AirPods demands continues to be "off the charts," and Apple is "working hard to catch up with the incredible customer demand" for the earbuds. Earlier in the call, Apple CEO Tim Cook called AirPods a "cultural phenomenon." Last month we introduced new AirPods, the second generation of the world’s most popular wireless headphones. Demand has been incredible. This is nothing less than a cultural phenomenon. With a new Apple-designed H1 chip, the new AirPods deliver faster connect times, more talk time, and the convenience of hands free "Hey Siri."As for Apple Watch, it continues to be the best selling smart watch in the world, with three quarters of Apple Watch sales during the quarter going to first time Apple Watch owners. The Apple Watch saw its best quarterly results for a non-holiday quarter, and Apple's wearables business saw growth close to 50 percent in Q2 2019. Apple's wearables business has now reached the size of a Fortune 200 company, which Cook said is "an amazing statistic" since it's only been four years since the Apple Watch was introduced.

Apple Sees All-Time Record Response to New iPhone Trade-In Initiatives

During today's earnings call for the second fiscal quarter of 2019 (first calendar quarter), Apple CEO Tim Cook said that Apple's iPhone trade-in efforts have been highly successful. According to Cook, Apple saw an all-time record response to the company's trade-in promotions, and Apple saw more than four times the number of trade-ins from the year-ago quarter. When asked which devices people are trading in, Cook said that it's "all over the place." iPhone 6, 6 Plus, 7, 7 Plus, and fewer 8 and 8 Plus models. Some customers, he says, are on a two-year upgrade cycle, some on a one-year upgrade cycle, and some on three or four year cycles. Cook said that Apple is aiming to offer better than average trade-in values to provide "extra benefits" to iPhone users. In our stores we offer a trade-in value that is more than the blue book of the device, for lack of a better description. And so we have topped those up to provide extra benefit to the user. Apple in November began offering a limited-time promotion that provided up to $100 in additional credit when trading in an iPhone. The program allowed customers to buy a new iPhone XR, XS, or XS Max at a more heavily discounted price when trading in an older device. Apple is no longer running that specific program, but the trade-in page continues to promote new iPhone pricing that's available when trading in an old iPhone and Apple's prices are better than most other trade-in programs for the

Apple Sees Strongest iPad Growth in Six Years in Q2 2019

Amid declining iPhone sales, Apple today said in its Q2 2019 earnings report that the iPad saw its strongest growth in six years. Apple's iPad sales hit $4.9 billion in Q2 2019, up from $4 billion in the year-ago quarter, marking a 22 percent increase in revenue. Apple in October 2018 introduced all new iPad Pro models that eschew the Touch ID Home button in favor of a Face ID biometric system, allowing for a larger display area. Apple says that the iPad's revenue growth was largely due to a strong customer response to the iPad Pro. In March, Apple added to its iPad lineup with a new $499 iPad Air option, which serves as a middle tier offering between the iPad Pro and the $329 sixth-generation iPad. Apple also introduced a new version of the iPad mini, marking the 7.9-inch tablet's first update in several years. Both the iPad Air and the iPad mini 5 support the Apple Pencil, enabling Apple Pencil integration across Apple's entire iPad lineup.

Apple's Services Revenue Hits New All-Time High of $11.5 Billion in Q2 2019

Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, and AppleCare, has become an increasingly important revenue driver for Apple amid stagnating iPhone sales, and Apple has been focusing more than ever on its services category. During the second fiscal quarter of 2019, Apple's services segment brought in $11.5 billion in revenue, up from the $9.9 billion services earned in the second quarter of 2018. Apple set a new all-time record for services revenue this quarter. Apple set new March quarter revenue records for the App Store, iCloud, Apple Pay, and AppleCare. Apple Pay is available in 30 markets and expect to be live in 40 markets by the end of the year. Apple now has 390 million paid subscriptions across all of its services, an increase of 30 million compared to last quarter. By 2020, Apple expects to pass half a million paid subscriptions by 2020. Apple in March announced a slew of new services that will boost services revenue even higher in the future. Apple News+, a $9.99 per month service that provides unlimited access to more than 200 magazines, has already launched, and later this year Apple is introducing Apple Arcade, Apple News+, and a new Apple Card credit card. Apple has said that it is aiming to reach $14 billion in services revenue per quarter by 2020, and the company is well on its way to reaching that

Apple CEO Tim Cook Says Performance in China Has Improved Over Previous Quarter

Apple today announced its earnings results for the second fiscal quarter (first calendar quarter) of 2019, and ahead of the company's upcoming earnings call, Apple CEO Tim Cook shared some remarks on Apple's results with CNBC. According to Cook, Apple's performance in China improved over the previous quarter and saw greater strength towards the end of the quarter. A sales tax cut in the country decreased the price of Apple products, and Apple also made its own pricing adjustments in the country. Cook also told CNBC that the trade relationship between the U.S. and China had improved, resulting in a "much better" tone. "The tone is much better than it was in the November-December timeframe. I think that affects consumer confidence in a very positive way," Cook said.Apple had $10.22 billion in sales in its Greater China category, which includes Taiwan and Hong Kong. During the quarterly earnings call, Cook said that while worldwide revenue was down 17 percent, declines were smaller in the final weeks of the March quarter. Apple says that November and December were the most challenging months, which is an encouraging trend. Apple reported revenue of $58.02 billion and earnings per share of $2.46. Apple's guidance for the third fiscal quarter of 2019 is $52.5 to $54.5 billion, higher than analyst expectations and an indication that iPhone sales in China are

Apple Reports 2Q 2019 Results: $11.56B Profit on $58B Revenue as Services Revenue Hits All-Time High

Apple today announced financial results for the second fiscal quarter of 2019, which corresponds to the first calendar quarter of the year. For the quarter, Apple posted revenue of $58.0 billion and net quarterly profit of $11.6 billion, or $2.46 per diluted share, compared to revenue of $61.1 billion and net quarterly profit of $13.8 billion, or $2.73 per diluted share, in the year-ago quarter. Gross margin for the quarter was 37.6 percent, compared to 38.3 percent in the year-ago quarter, with international sales accounting for 61 percent of revenue. Apple also declared an increased quarterly dividend payment of $0.77 per share, up from $0.73. The dividend is payable on May 16 to shareholders of record as of May 13. In addition to the increase in the dividend payment, Apple says it has authorized another $75 billion for share repurchases. This is the second quarter since Apple changed the way it reports its results, with the company no longer providing unit sales data for iPhone, iPad, and Mac. As a result, Apple is only providing revenue figures for its various segments, leaving analysts to estimate unit sales based on their own calculations.“Our March quarter results show the continued strength of our installed base of over 1.4 billion active devices, as we set an all-time record for Services, and the strong momentum of our Wearables, Home and Accessories category, which set a new March quarter record,” said Tim Cook, Apple’s CEO. “We delivered our strongest iPad growth in six years, and we are as excited as ever about our pipeline of

Apple to Announce Q2 2019 Earnings on April 30

Apple today updated its website to announce that it will share its earnings results for the second fiscal quarter (first calendar quarter) of 2019 on Tuesday, April 30. Apple's second quarter earnings results will give us a look at how well Apple's products are doing following the first fiscal quarter of 2019, which saw Apple unexpectedly lower its revenue guidance due to fewer than anticipated iPhone upgrades. Apple has dropped prices on iPhones and other products in China and some other emerging markets, plus it has shifted towards focusing on trade-in deals and monthly payment plans that lower the cost of the newest iPhones. Apple's guidance for the second fiscal quarter of 2019 included expected revenue of $55 to $59 billion and gross margin between 37 and 38 percent. Apple in Q2 2018 brought in $61.1B in revenue, so the company is expecting a year-over-year decline in Q2 2019 based on its provided guidance. As announced back in November, this will be the second quarter where Apple will not provide specific unit sales data for iPhone, iPad, and Mac. Apple's quarterly earnings statement will be released at 1:30 p.m. Pacific/4:30 p.m. Eastern, with a conference call to discuss the report taking place at 2:00 p.m. Pacific/5:00 p.m. Eastern. MacRumors will provide coverage of both the earnings release and conference call on April

18 Key Takeaways From Apple's First Earnings Call of 2019

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

Strategy Analytics: Apple Shipped an Estimated 65.9 Million iPhones in Holiday Quarter

Apple shipped an estimated 65.9 million iPhones during the first fiscal quarter of 2019 (aka the fourth calendar quarter of 2018) according to new data shared today by Strategy Analytics. As of this quarter, Apple is no longer providing a breakdown of unit sales of the iPhone, iPad, and Mac, so we will not have concrete data on how well the iPhone is selling going forward. Apple in Q1 2018 sold 77.3 million iPhones, which would mean Apple sold 11.4 million fewer iPhones in Q1 2019 if Strategy Analytics' estimates are correct, marking a 15 percent decline in sales year-over-year.Global iPhone shipments fell sharply, due to high retail pricing, unfavorable foreign exchange rates, intense competition from rivals like Huawei, battery replacement programs driving longer ownership cycles, diminished carrier subsidies in some developed markets, and flagging demand in some emerging markets.Apple's Q1 2019 iPhone revenue was $52 billion, down from $61 billion in the year-ago quarter, also a 15 percent decline. The drop in iPhone revenue led to total revenue of $84.31 billion, down from $88.3 billion in Q1 2018. Despite the decline in iPhone sales, which Apple CEO Tim Cook has attributed to weakness in China and fewer upgrades, Q1 2019 was Apple's second-best in terms of both revenue and profit, coming in behind only the first fiscal quarter of

Apple CEO Tim Cook: 'I Do Think Price is a Factor' in Declining iPhone Upgrades

During today's earnings call for the first fiscal quarter of 2019, Apple CEO Tim Cook was asked whether he thought that the pricing of the iPhone XR, XS, and iPhone XS Max was too high. In response, Cook said that while he didn't feel that was as much of a factor in the United States, it was an issue in emerging markets. The iPhone XS is priced the same as the iPhone X at $999, while the iPhone XS Max, a new device, was $100 more. The XR, at $749, was priced to be right in the middle of the entry level iPhone 8 and iPhone 8 Plus models. Cook said that's a "pretty small difference in the United States compared to last year." In emerging markets, however, iPhone pricing was an issue due to the strength of the dollar. Foreign exchange rates amplified the pricing increases leading to weaker sales. Cook says that in January, in some locations, the company has absorbed all or part of the currency movements compared to a year ago, getting closer to local price compared to a year ago. Cook in an interview with Reuters earlier today said that Apple is lowering iPhone prices in some emerging markets. In developed markets, like Japan, a lack of subsidies has also become a major factor. Even in the U.S., where subsidies have been phased out for several years, Cook said that a person who last purchased an iPhone 6 or 6s for $199 when subsidies were still in place may be reluctant to upgrade to a device that costs upwards of $749 without subsidies. Apple is working to address the subsidy issue with trade-ins and installment

Apple CEO Tim Cook: Customers Are Holding on to Older iPhones 'a Bit Longer' Than in the Past

Apple saw lower than expected iPhone sales during its first fiscal quarter of 2019 (aka the 2018 holiday quarter) and one explanation provided by Apple was lower quarterly iPhone upgrades. During today's earnings call, Apple CEO Tim Cook delved into the reasons why Apple is seeing fewer upgrades. First and foremost, he named foreign exchange rates. The strength of the U.S. dollar has made the iPhone much more expensive in many parts of the world, which is why Apple today said that it plans to lower prices in some emerging markets. In Turkey, for example, the iPhone became so expensive due to exchange rates that revenue fell $700 million from the previous year. Cook also said that iPhone subsidies are becoming increasingly less common, which is impacting upgrade rates. In Japan, for example, it used to be common to have subsidies for smartphones, but local regulations have eliminated many of those. According to Cook, less than half of iPhones sold in Japan were subsidized compared to 3/4ths a year ago. The total value of subsidies has declined as well. Cook's third reason for fewer iPhone upgrades was the battery replacement program that Apple offered across 2018, allowing customers to swap out the battery in their iPhones for $29. Cook said that this made it inexpensive and efficient to replace iPhone batteries and hold on to older iPhones for a longer period of time. According to Cook, while analysts suggested Apple shouldn't do it, the company "strongly believes it was the right thing to do for [its] customers." To combat fewer upgrades, Cook pointed

Apple's Services Revenue Up 19% Year-Over-Year in Q1 2019, Hits New All-Time High

Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, and AppleCare is an increasingly important revenue driver for Apple amid stagnating iPhone sales, and services growth is once again hitting an all time high. During the first fiscal quarter of 2019, Apple's services segment brought in $10.9 billion in revenue, up from the $9.1 billion services earned in the first quarter of 2018. In all five of its geographic regions, including China, Apple saw new December quarter revenues record for the services category. Apple hit a December quarter record for AppleCare, and nearly 16 years after launching iTunes Store, it saw its highest quarterly revenue ever thanks to Apple Music. The App Store also saw record results propelled by record sales on Christmas and New Years. Over 1.8 billion Apple Pay transactions were made during the quarter, 2x more than the previous quarter, and Apple News set a new record with more than 85M monthly active users. Apple has more than 360 million paid subscribers across its services, an increase of 120 million compared to the year-ago quarter. Apple CFO Luca Maestri said that the company expects the total number of paid subscribers to surpass half a billion in 2020. Apple is aiming to reach $14 billion in services revenue per quarter by 2020, and it is well on its way towards reaching that goal. Apple is working on bolstering its services category in 2019, breaking into the television industry. Apple is has more than tw

Apple Now Has 1.4 Billion Active Devices Worldwide

Apple CEO Tim Cook today announced that its active installed base of devices has hit 1.4 billion, a milestone the company hit at the end of December. Apple's active installed base includes the iPhone, iPod touch, iPad, Mac, Apple TV, and Apple Watch models in use around the world. Of the 1.4 billion active devices, 900 million of those are iPhones. The new 1.4 billion milestone comes nearly a year after Apple announced that it had 1.3 billion active devices back in December 2018, and the growth comes despite a Q1 2019 decline in iPhone sales. On the strength of that active installed base, Apple's services category set new all-time records, seeing a 19 percent growth in revenue

Apple Lowering iPhone Prices in Some International Markets to Boost Sales

Apple CEO Tim Cook today told Reuters that the company is "rethinking" iPhone prices outside of the United States. Setting prices in U.S. dollars has made phones more expensive in local currencies, so Apple is planning to lower prices. Cook says that in some international markets, after assessing macroeconomic conditions, Apple will go back to pricing that's "more commensurate" with what local prices were last year to boost sales. "When you look at foreign currencies and then particularly those markets that weakened over the last year those (iPhone price) increases were obviously more," Cook told Reuters. "And so as we've gotten into January and assessed the macroeconomic condition in some of those markets we've decided to go back to more commensurate with what our local prices were a year ago in hopes of helping the sales in those areas."Apple has already started lowering the price of the iPhone for third-party distributors in China, and price cuts could also be introduced in other areas like India and Brazil, where the iPhone is prohibitively expensive and has seen stalled growth due to high pricing. Cook may provide details on specific areas where price cuts will be implemented during the earnings

Apple's 'Wearables, Home and Accessories' Category Now Bringing in More Revenue Than iPad, and Soon Mac

Apple's "Wearables, Home, and Accessories" category, which used to be called the "Other" category, has surpassed the iPad in revenue and is closing in on the Mac lineup as well. The Wearables, Home, and Accessories category brought in $7.3 billion during the quarter, compared to $6.7 billion for iPad and $7.4 billion for Mac. Overall, Wearables, Home and Accessories category growth was up 33 percent compared to the $5.5 billion it earned in the year-ago quarter. Apple Watch, HomePod, Apple TV, AirPods, Beats products, iPod touch, and Apple-branded and third-party accessories are included in the category, but it's Apple's wearables that have been driving growth. The wearables category has been setting regular quarterly revenue records thanks to the strength of Apple Watch sales. In Q4 2018, for example, Apple saw wearables growth over 50 percent, and we're likely to hear more about wearables during today's earnings call. As Asymco's Horace Dediu pointed out at the beginning of January, the Apple Watch is also now a "decidedly bigger business" than Apple's iPod ever was, based on historical revenue records and estimated Apple Watch sales. Apple does not break down Apple Watch sales individually, lumping the data in with sales of other products in the Wearables, Home, and Accessories category, but the company does often give hints on how well the Apple Watch is selling. With iPhone sales stagnating somewhat, Apple will be increasingly relying on revenue from its

Apple Reports 1Q 2019 Results: Nearly $20B Profit on $84.3B Revenue, Second-Best Quarter Ever Despite Earnings Warning

Apple today announced financial results for its first fiscal quarter of 2019, which corresponds to the fourth calendar quarter of 2018. For the quarter, Apple posted revenue of $84.31 billion and net quarterly profit of $19.965 billion, or $4.18 per diluted share, compared to revenue of $88.3 billion and net quarterly profit of $20.1 billion, or $3.89 per diluted share, in the year-ago quarter. The earnings report comes after Apple issued a rare warning on January 2 that revenue for the quarter would come in at least $5 billion below the company's original guidance, with Apple pointing to a number of factors including the later launch of the iPhone XR, general weakness in China, and fewer upgrades as customers took advantage of Apple's reduced pricing on battery replacements in 2018 to extend the lives of their current phones. Even with the earnings warning, the quarter was the second-best in Apple's history in terms of revenue and profit, trailing only the first fiscal quarter of 2018. Gross margin for the quarter was 38.0 percent, compared to 38.4 percent in the year-ago quarter, with international sales accounting for 62 percent of revenue. Apple also declared an upcoming dividend payment of $0.73 per share, payable February 14 to shareholders of record as of February 11. This quarter also marks a change in the way Apple reports its results, as the company is no longer providing unit sales data for iPhone, iPad, and Mac. Apple argues that quarterly unit sales are not an accurate indicator of the underlying strength of Apple's business, but critics have