Apple Q1 had $58 billion revenue, Services hit 390M paid subscriptions, iPhone sales drop

0
Google best Search engine, we keep Safari safe: Tim Cook
Apple CEO Tim Cook speaks during an event to announce new products Tuesday Oct. 30, 2018, in the Brooklyn borough of New York. (AP Photo/Bebeto Matthews)

Riding on the growth in its Services and wearable segments, Apple has posted a revenue of $58 billion for its second quarter of 2019 — a decline of 5 per cent from the year-ago quarter.

The revenue from iPhones was $31.05 billion — down from the year-ago quarter but enough to make up over 53 per cent of the entire revenue.

The revenue from Apple’s non-hardware business like iCloud, Apple Music and App Store surged to $11.5 billion this 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,” Apple CEO Tim Cook said in a statement late Tuesday.

This is a good quarter for Apple compared to the last one where the company admitted poor iPhone sales and revised its earnings guidance.A

The iPhone sales had fallen 15 per cent from the year prior in Apple’s first quarter.

In Q2, international sales accounted for 61 per cent of the revenue.

“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,” Cook added.

Apple generated operating cash flow of $11.2 billion in its second quarter.

“We also returned over $27 billion to shareholders through share repurchases and dividends. Given our confidence in Applea¿s future and the value we see in our stock, our Board has authorized an additional $75 billion for share repurchases,” informed Luca Maestri, Applea¿s CFO.

For its fiscal third quarter of 2019, Apple forecasts revenue between $52.5 billion and $54.5 billion.

The company recently announced new Services like News+ subscriptions, Apple TV+ and Apple Arcade.

The company has also released back-to-back new models of AirPods, iPad Air, iPad mini and the iMac desktop.

Paid subscriptions for Apple Services business reached a record high of over 390 million at the end of March — an increase of 30 million in the last quarter alone, the company’s CEO Tim Cook has said.

“In fact, we had our best quarter ever for the App Store, Apple Music cloud services and our App Store search ad business and we set new March quarter revenue records for AppleCare and Apple Pay,” Cook told analysts during the earnings call on Tuesday.

Apple Pay transaction volume more than doubled year-over-year.

“We’re on track to reach 10 billion transactions this calendar year. Apple Pay is now available in 30 markets and we expect to be live in 40 markets by the end of the year,” Cook announced.

Beginning in mid-May, the all-new Apple TV app will bring together the different ways to discover and watch shows, movies, sports news and more in one app across iPhone, iPad, Apple TV, Mac, smart TVs and streaming devices.

“Coming this fall, Apple TV+ will be the new home for the world’s most creative storytellers, featuring exclusive original shows, movies and documentaries,” Cook said.

The company recently announced Apple Arcade — the world’s first game subscription service for mobile and desktop.

“With over 100 new games, all with no ads or ad tracking, no additional purchases and respect for user privacy, we’ve created a service for players of all age’s, kids to teens to adults and one that families can enjoy together

Apple posted better earnings and revenue than Wall Street expected for the March 2019 quarter — even as sales of its flagship iPhones were $6.5 billion lighter in the period, down by 17 per cent.

iPhones sales fell at their steepest-ever rate during the three months to the end of March but are showing signs of stabilising, the BBC reported.

Apple lifted its outlook for the three months to June, sending its shares over 5 per cent higher in after-hours trading.

The company had warned on iPhones sales earlier this year, citing China where Apple competes with cheaper rivals such as Huawei Technologies and Xiaomi.

Apple chief executive Tim Cook though said sales were stronger towards the end of March, including in China where it cut iPhone prices to boost demand.

For the quarter ended March 30, which is Apple’s fiscal year 2019 second quarter, the company reported revenue of $58.0 billion, down 5 per cent from the year-ago quarter, and earnings per diluted share of $2.46, down 10 per cent.

Wall Street analysts’ consensus estimates had projected Apple to report revenue of $57.37 billion and EPS of $2.36. Apple’s stock rose over 5 per cent in after-hours trading.

While iPhone revenue fell, to $31.05 billion, Apple’s Services segment — which includes the App Store, Apple Music, iCloud, Apple Care and Apple Pay — generated quarterly record revenue of $11.5 billion, up 16 per cent.

According to the CEO, Apple had 390 million paid subscriptions at the end of March, up 30 million in the last quarter.

Apple is also attempting to shift its reliance on the iPhone towards services and last month unveiled its new TV streaming platform, Apple TV+, to take on the likes of more established companies such as Netflix.

Services revenue rose to $11.4 billion from $9.8 billion