Reminder: Apple to Announce Q1 2020 Earnings on January 28

As a reminder for anyone who may have missed the announcement during the holidays, Apple revealed that it will share its earnings results for the first quarter of its 2020 fiscal year on Tuesday, January 28.

The financial report should be released at 1:30 p.m. Pacific Time on that day as usual, followed by a conference call with Apple CEO Tim Cook and Apple CFO Luca Maestri at 2:00 p.m. Pacific Time that will be streamed live on Apple's website. Cook and Maestri will discuss the results and field questions from analysts.


Apple's guidance for the quarter, which ran September 29 through December 28 of 2019:
  • revenue between $85.5 billion and $89.5 billion

  • gross margin between 37.5 percent and 38.5 percent

  • operating expenses between $9.6 billion and $9.8 billion

  • other income/(expense) of $200 million

  • tax rate of approximately 16.5 percent
By comparison, Apple brought in revenue of $84.3 billion in Q1 2019, despite issuing a rare earnings warning due to declining iPhone sales at the time. The company's all-time quarterly revenue record is $88 billion in Q1 2018.

Apple's earnings results will provide some insight into how well the latest iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max models sold during the holiday shopping season. The devices became available to purchase in stores on September 20 in many countries, nine days before the quarter began.

Apple's services and wearables categories have also been growing for several quarters, so investors will look to see if that trend continues.

(Thanks, Leonard!)

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Apple Stock Sets New All-Time High, Closes at $300 Per Share

Apple shares today hit a new all-time high and reached a closing price of $300 following yesterday's New Year's holiday, marking significant growth over the course of the last year.

In early January 2019, Apple shares were at $144 after Apple lowered its revenue guidance for Q1 2019 by up to $9 billion, spooking investors.


iPhone sales in late 2018 and 2019 saw a major drop in China due to rising ‌iPhone‌ prices and trade tensions, but Apple has managed to boost sales by lowering prices, offering promotions, and introducing the iPhone 11 at a new $699 price point.

Apple stock has surged over the course of the last two months thanks to reports of better than expected ‌iPhone 11‌ and 11 Pro sales and reports of stronger than ever AirPods sales.

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Apple Shares Reach New All-Time High, But Saudi Aramco to Overtake as World’s Most Valuable Company

Apple shares crossed the $269 mark in intraday trading today, setting a new all-time high for the company.

However, oil giant Saudi Aramco is set to overtake Apple as the world's most valuable company based on market cap after raising $25.6 billion in the world's biggest initial public offering ever, according to Reuters. The shares are expected to begin trading on the Saudi stock market on December 11.


Saudi Aramco only offered a 1.5 percent stake in the company to public shareholders, so the $25.6 billion raised gives it an overall valuation of around $1.7 trillion, topping Apple's market cap of around $1.1 trillion.

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Apple Sets New Q4 Wearables Record in Every Market

Apple CEO Tim Cook today said that Apple set new fourth quarter revenue records for wearables in every market that it operates in thanks to strong sales of the Apple Watch, AirPods, and Beats headphones.

Cook said that Apple saw "amazing results" in the wearables, home, and accessories category with revenue hitting $6.5 billion. That's up from $4.2 billion in the year-ago quarter, which is impressive growth. Cook said that Apple is "thrilled" with its wearables category specifically.

We're thrilled with the results. As to what's driving it - it's the totality that's driving it. For some people, it's about fitness, for some people it's about health, for some people it's about communication, and for some people, it's about all of the above. I think always-on for the Series 5 is a game changer for many of our users.
According to Cook, three quarters of ‌Apple Watch‌ buyers were new to ‌Apple Watch‌. Apple is still "significantly in the build mode" in terms of getting them in the hands of more consumers.

Cook also touched briefly on Apple's focus on health. Cook said that Apple plans to improve on Health related efforts that it has now such as medical records and health research, but that there are also "things that we aren't going to talk about just yet," perhaps referring to future ‌Apple Watch‌ features.

"There will be a day that we look back and see Apple's greatest contribution to people's health," Cook said.

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Apple’s Services Revenue Hits New All-Time High of $12.5 Billion in Q4 2019

Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, AppleCare, Apple Arcade, Apple News+ and more, is an important revenue driver for Apple amid flagging iPhone sales, leading Apple to focus more effort on its services category.

In the fourth fiscal quarter of 2019, Apple's services segment brought in $12.5 billion, up from $10.6 billion in the year-ago quarter and $11.46 billion in the third quarter of 2019. Services grew 18 percent year-over-year, and Apple said that it saw growth in all regions around the world.


Apple CEO Tim Cook said that almost every one of Apple's services set new all-time revenue records, including its search ad business, ‌Apple Music‌, Apple Care, cloud services, and the ‌App Store‌. Apple's services category is now the size of a Fortune 70 company by revenue.

450M paid subscribers across its services. Apple well on the way to surpassing the 500M mark during 2020.

For ‌Apple Pay‌, revenue and transactions more than doubled year over year with more than 3 billion transactions, growing four times as fast as PayPal. Apple now has 450 million paid subscribers across its services, and is on its way to surpassing the 500 million mark in 2020.

Apple later this week will unveil Apple TV+, a new $4.99 per month streaming television service. ‌Apple TV‌+ revenue will be limited for the first year as Apple is giving it away for free to customers who have purchased a new device, but along with ‌Apple News‌+, ‌Apple Arcade‌, and Apple Card, ‌Apple TV‌+ could drive significant services growth in the future.

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Former Apple Lawyer Facing Criminal Charges for Insider Trading

Former Apple lawyer Gene Levoff, who was in charge of enforcing Apple's Insider Trading Policy, is facing criminal charges related to insider trading of Apple stock, reports CNBC.

Levoff was today indicted for insider trading, and he is facing six counts of security fraud and six counts of wire fraud. According to the U.S. government, Levoff used inside information from Apple, including financial results before they were published, to sell Apple stock ahead of weaker than expected earnings results between 2011 and 2016 as well as to purchase stock during stronger quarters.

This scheme to defraud Company-1 and its shareholders allowed Levoff to realize profits of approximately $227,000 on certain trades and to avoid losses of approximately $377,000 on others.

When Levoff discovered that Company-1 had posted strong revenue and net profit for a given financial quarter, he purchased large quantities of stock, which he later sold for a profit once the market reacted to the news.
The United States Securities and Exchange Commission first filed charges against Gene Levoff in February, but now he is facing criminal charges in addition to civil charges.

Levoff worked for Apple from 2008 to 2018, and prior to when he was fired from the company, he was the senior director of corporate law.

Apple declined to comment on the criminal charges filed today, but in February, said the following: "After being contacted by authorities last summer we conducted a thorough investigation with the help of outside legal experts, which resulted in termination."

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Apple’s Stock Sets New All-Time High

Apple shares are currently trading above the $234 mark on the intraday market, setting a new all-time high for the company. As noted by CNBC, the stock's previous all-time high was $233.47 in October 2018.


AAPL has surged nearly 10 percent over the past month, fueled in part by multiple reports indicating that iPhone 11 and iPhone 11 Pro sales have been better than expected so far in several countries, including the United States, China, and India, something that Apple CEO Tim Cook alluded to in a recent interview.

Apple is set to report its fourth quarter earnings results on Wednesday, October 30 after the stock market closes.

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Apple to Announce Q4 2019 Earnings on October 30

Apple today updated its investor relations page to announce that it will share its earnings results for the fourth fiscal quarter (third calendar quarter) of 2019 on Wednesday, October 30.

The earnings results will offer up some insight into how well the iPhone 11, iPhone 11 Pro, and iPhone 11 Max did during their first week of availability, though Apple no longer breaks out iPhone unit sales so specific data won't be available.


Apple's guidance for the fourth quarter of fiscal 2019 includes expected revenue of $61 to $64 billion and gross margin between 37.5 and 38.5 percent. If on the higher end of the range, Apple's revenue will beat its Q4 2018 revenue of $62.9 billion.

Guidance for the holiday quarter provided by Apple in its Q4 earnings results will give us the most insight into how the company's newest iPhones are selling.

The quarterly earnings statement will be released at 1:30 PM Pacific/4:30 PM Eastern, with a conference call to discuss the report taking place at 2:00 PM Pacific/5:00 PM Eastern. MacRumors will provide coverage of both the earnings release and conference call on October 30.

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Apple Disputes Goldman Sachs Analyst Report Claiming Free Year of Apple TV+ Will Impact Earnings

Goldman Sachs this morning cut its target price for Apple's stock from $187 a share to $165 a share, claiming Apple's plans to give away free access to its upcoming Apple TV+ service will cause a "material negative impact" on earnings because of how the accounting for the service will work.


Goldman Sachs' Rod Hall said that Apple would account for the one-year free trial as a combined hardware and services bundle discount, which would show lower hardware profit margins.
"We believe that Apple plans to account for its 1-year trial for TV+ as a ~$60 discount to a combined hardware and services bundle," wrote Goldman analyst Rod Hall, in a note.

"Effectively, Apple's method of accounting moves revenue from hardware to Services even though customers do not perceive themselves to be paying for TV+. Though this might appear convenient for Apple's services revenue line it is equally inconvenient for both apparent hardware ASPs and margins in high sales quarters like the upcoming FQ1′20 to December," Hall added.
Apple in a statement to CNBC disputed Goldman Sachs' negative call and said that it does not expect the introduction of Apple TV+ to have an impact on its financial results.
"We do not expect the introduction of Apple TV+, including the accounting treatment for the service, to have a material impact on our financial results," the company said in a statement to CNBC.
Apple is planning to provide one free year of Apple TV+ access to all customers who purchase an iPhone, iPad, iPod touch, Apple TV, or Mac, aka any device able to play the service's TV shows and movies.

For those who do not get Apple TV+ for free through a device purchase, Apple is charging $4.99 per month for the entire family. Apple TV+ is set to launch on Friday, November 1.

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Apple Becomes Trillion Dollar Company Again

Apple has regained its status as a trillion dollar company by market cap, which is its total outstanding shares multiplied by its stock price.


Apple achieved this milestone by hitting a stock price above $221.28 in intraday trading today, giving it a market cap slightly over $1,000,000,000,000 based on its 4,519,180,000 outstanding shares as of July 19, 2019, which the company disclosed in its most recent quarterly 10-Q filing with the SEC.

Apple first achieved a trillion dollar valuation in August 2018 with a $207 share price, but the company continues to buy back its shares, which is why it took a higher share price this time around to hit the 13-digit milestone.

Apple's stock is up over three percent since it hosted its annual iPhone and Apple Watch event at Steve Jobs Theater yesterday.

Apple and Microsoft, valued at around $1.03T, are currently the only U.S. companies with a trillion dollar market cap, but Amazon has achieved the milestone in the past and Google parent company Alphabet has come very close.

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