Apple CEO Tim Cook on 5G: ‘We’re Excited About Our Pipeline’

During today's earnings call covering the first fiscal quarter of 2020, Apple CEO Tim Cook was asked about 5G, and how much of a demand driver it might be for Apple.

Cook of course said that he wouldn't comment on future Apple products with respect to 5G, but said 5G is in the "early innings of its deployment on a global basis."


Cook went on to say that Apple "couldn't be prouder" of its current iPhone lineup, and is excited about the upcoming product pipeline. "We wouldn't trade our position with anybody," he said.

In another question, Cook was asked about the demand for 5G and the demand for lower-cost iPhones, and how that might impact Apple's future ‌iPhone‌ product plans, which Cook also declined to comment on. He did say that in general, "it's important to look around the world at 5G deployment schedules." Cook said he will not comment on the price of handsets that are not announced.

Rumors suggest that Apple's 2020 iPhones will include 5G support for the first time, allowing the devices to connect to available mmWave and Sub-6GHz 5G networks, which carriers are in the process of rolling out in the United States and around the world. Rumors indicate Apple will use Qualcomm's 5G chips for 5G connectivity.


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Apple Limiting Employee Travel to China Amid Coronavirus Outbreak, Working to Avoid Supply Shortages

During today's earnings call, Apple CEO Tim Cook commented on the coronavirus outbreak in China, which investors fear could potentially impact Apple's business, affecting production of both current iPhones and the new low-cost iPhone that's on the horizon.

Cook said that Apple is donating to China to help with the outbreak and working with partner companies.

We're donating to groups that are working to contain the outbreak. We're working closely with our Apple team members in the affected areas, and our thoughts are with all of those in the region.
In an interview with CNBC, Cook confirmed that employee travel has been restricted to "business critical travel" only as of last week, and employees in Wuhan and across China are receiving care kits from Apple.
"We're restricting travel to business critical travel. For employees that are in the Wuhan area, we are providing care kits and supplying them across our employee population in China as well.
Cook said that Apple's decision to set next quarter guidance with a range of $4 billion is reflective of the coronavirus outbreak and the "uncertainty around that." Apple's guidance for Q2 2020 is $63 to $67 billion, a larger range than normal.

The situation is still emerging, said Cook, and Apple is monitoring the situation closely and gathering data points.

According to Cook, supplier factories in wider China are opening late after Chinese New Year, on February 10, which Apple is working to manage. Apple does have suppliers in the Wuhan area, but all of these suppliers have alternate suppliers, and Apple is working to ensure good supplies. Apple has accounted for the delayed startup with its larger range of outcomes.

In its retail stores, Apple is limiting hours, checking employees, and sanitizing its stores regularly. One store has also been shut down for the time being. Apple's retail sales have slowed due to virus concerns, but this is accounted for in Apple's guidance numbers for Q2 2020.


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Apple’s Services Revenue Hits New All-Time High of $12.7 Billion in Q1 2020

Apple's services category, which includes iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, AppleCare, Apple TV+, Apple Arcade, and more, has become a significant revenue driver for Apple.

In the first fiscal quarter of 2019, Apple's services segment brought in $12.7 billion, up from $10.9 billion in the year-ago quarter, marking growth of 17 percent. Every geographic saw double-digit growth, setting new records.


Apple across 2019 focused heavily on services, introducing Apple News+, ‌Apple TV‌+, ‌Apple Arcade‌, and Apple Card, all of which have contributed to the company's services growth. Cook shared some details on some of Apple's most popular services.

The ‌App Store‌ set a new December revenue record and hit $386 million in sales on New Year's Day, and ‌Apple News‌ has more than 100 million active users in the U.S., Australia, UK, and Canada. ‌Apple Pay‌ revenue and transactions more than doubled, exceeding 15 billion transactions. Apple plans to expand ‌Apple Pay‌ transit features to allow customers in Shenzhen and Guangzhou to pay for trips using a tap of the iPhone or the Apple Watch.

Cook said that ‌Apple TV‌+ is off to a "rousing start" and is "very strong" for people getting it in a bundle and people who have not purchased a new Apple device. ‌Apple Arcade‌ is also off to a strong start.

Cook also told Reuters that Apple expects to surpass its goal of 500 million subscribers for 2020 during current the quarter ending in March, well ahead of schedule. Apple is now aiming to hit 600 million subscribers by the end of the calendar year.


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Apple’s Wearables Category Sets All-Time Revenue Record in Q1 2020, Surpassing Mac for the First Time

During the first quarter of 2020, Apple's wearables category set a new all-time revenue record, according to Apple CEO Tim Cook.

Apple's wearables earnings category, which includes AirPods and Apple Watch along with accessories like Beats headphones and HomePod, hit $10 billion, up from $7.3 billion in the year-ago quarter.


Wearables, Home, and Accessories revenue surpassed Mac revenue for the first time this quarter. Mac revenue was at $7.2 billion in Q1 2020.

According to Apple CEO ‌Tim Cook‌, Apple could not make enough ‌AirPods‌ and ‌Apple Watch‌ Series 3 devices to meet demand during the quarter, and supplies continue to be low. Cook told Reuters that Apple is "working on both of those very hard."

‌Apple Watch‌ set a new all-time revenue record during the quarter, and more than 75 percent of new customers during the quarter were new to ‌Apple Watch‌. Both ‌AirPods‌ and ‌Apple Watch‌ were "must-have holiday gifts," driving growth even as supplies were constrained.

Cook says that Apple's wearables business is now the size of a Fortune 150 company.


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Apple Now Has 1.5 Billion Active Devices Worldwide

In today's earnings release where Apple reported record numbers due to the strength of iPhone sales, wearables, and services, Apple said that it now has 1.5 billion active devices.

Apple CEO Tim Cook said that the milestone was hit over the holiday period, and serves as a "powerful testament to the satisfaction, engagement and loyalty of our customers -- and a great driver of our growth across the board."


Apple's active installed base include ‌iPhone‌, iPod touch, iPad, Mac, Apple TV, and Apple Watch models in use around the world.

The active install base has grown from 1.4 billion, a number that Apple reported in January 2019.


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Apple Reports 1Q 2020 Results: $22.2B Profit on $91.8B Revenue, Best Quarter Ever

Apple today announced financial results for its first fiscal quarter of 2020, which corresponds to the fourth calendar quarter of 2019.

For the quarter, Apple posted revenue of $91.8 billion and net quarterly profit of $22.2 billion, or $4.99 per diluted share, compared to revenue of $84.3 billion and net quarterly profit of $20.0 billion, or $4.18 per diluted share, in the year-ago quarter. The quarter was the best in Apple's history in terms of revenue and profit, topping the first fiscal quarter of 2018.

Gross margin for the quarter was 38.4 percent, compared to 38.0 percent in the year-ago quarter, with international sales accounting for 61 percent of revenue. Apple also declared an upcoming dividend payment of $0.77 per share, payable February 13 to shareholders of record as of February 10.

“We are thrilled to report Apple’s highest quarterly revenue ever, fueled by strong demand for our iPhone 11 and iPhone 11 Pro models, and all-time records for Services and Wearables,” said Tim Cook, Apple’s CEO. “During the holiday quarter our active installed base of devices grew in each of our geographic segments and has now reached over 1.5 billion. We see this as a powerful testament to the satisfaction, engagement and loyalty of our customers — and a great driver of our growth across the board.”
Apple's guidance for the second quarter of fiscal 2020 includes expected revenue of $63-67 billion and gross margin between 38 and 39 percent.


Apple will provide live streaming of its fiscal Q1 2020 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

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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!)

Tags: earnings, AAPL

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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.

Tags: earnings, AAPL

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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.

Tags: earnings, AAPL

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Apple Reports 4Q 2019 Results: $13.7B Profit on $64B Revenue

Apple today announced financial results for the third calendar quarter and fourth fiscal quarter of 2019.

For the quarter, Apple posted revenue of $64.0 billion and net quarterly profit of $13.7 billion, or $3.03 per diluted share, compared to revenue of $62.9 billion and net quarterly profit of $14.1 billion, or $2.91 per diluted share, in the year-ago quarter. Earnings per share set a new fourth quarter record, while services revenue set an all-time quarterly record.

Gross margin for the quarter was 38.0 percent, compared to 38.3 percent in the year-ago quarter, with international sales accounting for 60 percent of revenue. Apple also declared an upcoming dividend payment of $0.77 per share, payable November 14 to shareholders of record as of November 11.


This quarter marks a full year since Apple changed the way it reports its results, with the company no longer providing unit sales data for iPhone, iPad, and Mac. As a result, Apple is only providing revenue figures for its various segments, leaving analysts to estimate unit sales based on their own calculations

For the full fiscal year, Apple generated $260.2 billion in sales with $55.3 billion in net income, compared to $265.5 billion in sales and $59.5 billion in net income for fiscal 2018.
“We concluded a groundbreaking fiscal 2019 with our highest Q4 revenue ever, fueled by accelerating growth from Services, Wearables and ‌iPad‌,” said Tim Cook, Apple’s CEO. “With customers and reviewers raving about the new generation of iPhones, today’s debut of new, noise-cancelling AirPods Pro, the hotly-anticipated arrival of Apple TV+ just two days away, and our best lineup of products and services ever, we’re very optimistic about what the holiday quarter has in store.”
Apple's guidance for the first quarter of fiscal 2020 includes expected revenue of $85.5-89.5 billion and gross margin between 37.5 and 38.5 percent.


Apple will provide live streaming of its fiscal Q4 2019 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

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