Apple Q2 2019: $58 Billion in Revenue; Services Revenue Hits Record $11.5 Billion
Apple has announced their 2019 Q2 earnings for the fiscal quarter ended on March 30, 2019, seeing quarterly revenue of $58 billion USD, a decline of 5% year on year. The company’s net income for the quarter was $11.6 billion USD. iPhone revenue hit $31 billion USD.
The iPhone maker said international sales accounted for 61% of the quarter’s revenue, while Services revenue hit an all-time high of $11.5 billion. Apple now has $225.4 billion USD in cash, sitting on a huge pile still, despite a drop of 8% compared to the year ago quarter.
“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 innovative hardware, software and services. We’re looking forward to sharing more with developers and customers at Apple’s 30th annual Worldwide Developers Conference in June.”
Apple is providing the following guidance for its fiscal 2019 third quarter:
• revenue between $52.5 billion and $54.5 billion
• gross margin between 37 percent and 38 percent
• operating expenses between $8.7 billion and $8.8 billion
• other income/(expense) of $250 million
• tax rate of approximately 16.5 percent
“We generated operating cash flow of $11.2 billion in the March quarter and continued to make significant investments in all areas of our business,” said Luca Maestri, Apple’s CFO. “We also returned over $27 billion to shareholders through share repurchases and dividends. Given our confidence in Apple’s future and the value we see in our stock, our Board has authorized an additional $75 billion for share repurchases. We are also raising our quarterly dividend for the seventh time in less than seven years.”
CEO Tim Cook told CNBC in an interview the company’s performance in China had improved over the previous quarter and saw a strong end leading up to the end of fiscal Q2. Cook also said Apple products benefited from a slight price reduction, thanks to a sales tax cut, while U.S.-China trade relations had also improved.
“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 to CNBC.
In after-hours trading, shares of AAPL are up nearly 5% due to the positive Q2 earnings report, beating analyst estimates.
…more to follow, refresh for updates