Apple Q1 2019: $51.9 Billion in iPhone Revenue, $84.3 Billion in Revenue [u]

Apple has announced their 2019 Q1 earnings, selling $51.9 billion worth of iPhones with quarterly revenue of $84.3 billion USD, a decline of 5% year on year. The company’s net income for the quarter was $19.9 billion USD.

The company had previously issued a revised Q1 earnings forecast, citing lower iPhone upgrades and economic issues in Greater China.

The iPhone maker said international sales accounted for 62% of the quarter’s revenue, while Services revenue hit $10.9 billion, an all-time record.

Services, Mac and Wearables set new all-time revenue records, according to Apple. Mac and Wearables saw a revenue increase of 9%, while Home and Accessories saw an increase of 33%.

“While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,” said Tim Cook, Apple’s CEO. “Our active installed base of devices reached an all-time high of 1.4 billion in the first quarter, growing in each of our geographic segments. That’s a great testament to the satisfaction and loyalty of our customers, and it’s driving our Services business to new records thanks to our large and fast-growing ecosystem.”

“We generated very strong operating cash flow of $26.7 billion during the December quarter and set an all-time EPS record of $4.18,” said Luca Maestri, Apple’s CFO. “We returned over $13 billion to our investors during the quarter through dividends and share repurchases. Our net cash balance was $130 billion at the end of the quarter, and we continue to target a net cash neutral position over time.”

Here is a breakdown of fourth-quarter sales (update: Apple reported last quarter they would no longer report unit sales, but rather revenue only per device. We’ve made corrections to this article and apologize in advance for the errors).

  • $51.9 billion in iPhone revenue (-15% revenue decline YoY)
  • $6.7 billion in iPad revenue
  • $7.4 billion Mac revenue

For Apple’s next fiscal Q2, they’re providing the following guidance:

• revenue between $55 billion and $59 billion
• gross margin between 37 percent and 38 percent
• operating expenses between $8.5 billion and $8.6 billion
• other income/(expense) of $300 million
• tax rate of approximately 17 percent

AAPL is up 2% in after-hours trading, as of writing.

Apple says their iOS install base has now reached 1.4 billion. Also, there are now 50 million Apple Music subscribers.

On New Year’s Day, Apple said $322 million USD in sales were made, setting an all-time record.

As for Apple Pay, there have now been over 1.8 billion transactions, twice the number compared to the year ago quarter.

On their Q1 earnings call, CEO Tim Cook also mentioned Apple News will see its first bilingual launch in Canada “later this quarter”.

…more to follow