Apple has made its first earnings call since the company issued its guidance revision, warning that profits may be down as iPhone sales struggled to live up to expectations.
Apple had forecasted to generate between $55 billion and $59 billion during this period, slightly down from the $61.1 billion the company had reported during the same quarter in 2018, but the good news is that Apple managed to come in at the higher end of its forecast.
The company generated $58 billion in revenue – $11.56 billion of that figure is profit for the company and its shareholders.
Unfortunately, the company no longer offers statistics on how many iPhones it sold, although Apple did reveal a revenue breakdown by product category to provide more information and offer clarity to investors, shareholders, and journalists.
Apple generated $31.05 billion from its iPhone range, and a record-breaking $11.45 billion from its services.
With Apple introducing a whole host of new services in 2019, including a new television subscription service, a premium news offering that’s already been released, an iOS/macOS gaming subscription service and an Apple-branded credit card, the future looks bright for Services, with the company offering users more than ever before.
Apple’s Mac lineup – which includes the recently refreshed iMac Pro and MacBook Pro range – generated $5.51 billion, whilst wearables, home, and accessories topped $5.13 billion.
Finally, the iPad range generated $4.87 billion – this figure takes into account the new iPad Pro and iPad range introduced at the end of 2018 and in the first few months of 2019.
Predictions for Q3 2019
Speaking of the third quarter, Apple has predicted smaller than expected $52.5 billion to $53.5 billion estimates, though this is common for the slower spring and summer season.
Speaking of the announcement, Tim Cook said: “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.
“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 at Apple’s 30th annual Worldwide Developers Conference in June.”
Luca Maestri, Apple’s CFO, added: “We 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.”
As Apple ventures into new services and product lines, it will be interesting to see how the stock market reacts, and whether earning calls will reflect increased growth. Keep it AppleMagazine for the latest on the company’s performance.
