Apple Inc. (NASDAQ:AAPL) has just announced the first quarter result of fiscal 2019, and it’s all about ‘decline’ and ‘drop’. The iPhone maker has always celebrated and cherished the results of its first fiscal quarter every year – the strongest quarter that generated more revenue, profit and higher sales of iPhone. Eventually, that has come to a halt, if not stopped completely, this year.
Apple’s revenue for fiscal Q1 2019 decline 5% compared to the same quarter a year ago. But, the drop is not limited to just revenue; Apple’s profit, worldwide sales of iPhone, revenue from iPhone sales, Apple’s revenue from China, iPhone sales in China have also been hit.
Before we dig a little deep into the Apple’s performance, quickly have a look of the main highlights of Apple’s fiscal Q1 2019 results:
- Apple’s fiscal Q1 2019 revenue clocked $84.3 billion – a decline of 5% YoY.
- 62% of Apple’s quarterly revenue came from International sales.
- $51.98 billion came from the sales of iPhone.
- Revenue from iPhone declined 15% from the year-ago quarter.
- Apple’s net profit in fiscal Q1 2019 declined to $19.97 billion from $20.07 billion in the same quarter a year ago.
- Revenue from Greater China – the most promising market outside the US – has also declined nearly 27% from the year-ago quarter.
- While the revenue from Europe and Japan also declined, Rest of APAC registered a negligible increase.
However, not all the bad for Apple. On the positive side, the performance of Apple’s other products improved and revenue from Services reached an all-time high. Below are the highlights that help Apple paint the promising scenarios:
- Revenue from Services reached $10.9 billion, a significant increase of 19% compared to the year-ago quarter.
- Revenue from iPad increased by nearly 17% to $6.72 billion.
- Wearables, Home and Accessories also performed well in the market and contributed $7.3 billion to the overall Revenue.
“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.
Tim Cook also revealed a few more interesting facts about the company and its performance:
- The Active Install Base of Apple devices has reached an all-time high to 1.4 billion, largely due to iPhone which has an active instal base of 900 million.
- Apple has got $130 billion cash in the bank – enough to buy the world’s top two most valued startups.
Despite missing the revenue target for fiscal Q1 2019, Apple’s share rose 6% post-result announcement.
Apple has blamed the weak sales performance of iPhone in China for the disappointing quarterly result. The ongoing legal battle over alleged patent violations in the country with Qualcomm also affected the company’s overall performance. Tim Cook blamed ongoing trade tension between the US and China for the below than expected sales of iPhone. However, he expects that the situation would improve soon and both the countries will soon settle with the more favouring trade agreement.