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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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.

Tags: earnings, AAPL

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Tim Cook: Apple Saw ‘Great Improvement’ in China in Q3 2019

Thanks to trade-in programs and other promotions, Apple saw significant improvement in iPhone sales in China, Apple CEO Tim Cook said today during today's earnings call covering the third fiscal quarter of 2019.

Cook said that Apple saw "great improvement" in China, returning to growth in constant currency in Greater China with improvements in year-over-year iPhone performance compared to the last two quarters.

We're happy with our performance across the board, including a return to growth in mainland China. We accomplished this despite strong headwinds from foreign exchange, which impacted the top-line growth rate by 300 points compared to a year ago, equivalent to $1.5 billion of revenue. In constant currency, our revenue grew in all five of our geographic segments.
Cook went on to say that Apple is "encouraged" by the results of the initiatives it launched earlier this year, with the company seeing a strong customer response to in0store trade-in and financing programs. iPhone in retail and online stores returned to growth on a year-over-year basis in June, said Cook, and the active installed base of iPhone users reached a new all-time high.

Despite the improvements, iPhone revenue was down during the quarter. The iPhone brought in $26 million, down from $29.5 billion in the third quarter of 2018. For the first time, the iPhone was responsible for less than half of Apple's revenue, with services and wearables making up for the decline in sales.

Cook said that later this year, Apple has "several new products" that it can't wait to share with customers, without going into details. Apple also has multiple services on the horizon, including Apple Card (coming in August), Apple Arcade, and Apple TV+.


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Apple’s Services Revenue Hits New All-Time High of $11.46 Billion

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

In the third fiscal quarter of 2019, Apple's services segment brought in $11.46 billion, up from $10.17 billion in the year-ago quarter and $11.45 billion in the second quarter of 2019.


Apple set new all-time records for AppleCare, Apple Music, App Store search ads, and more, along with a new third-quarter revenue record for the App Store. Apple saw double digit services revenue in all five geographical segments.

Apple surpassed 420 million paid subscribers in the third quarter, and Apple CEO Tim Cook said that Apple is well on its way to reaching its goal of reaching $14 billion in services revenue per quarter by 2020.

Apple Pay is now in 47 markets and in the June quarter, started adding more new users than PayPal and monthly transaction volume is growing 4x as fast. Apple is starting to roll out NYC transit support for Apple Pay in the United States, and Chicago will follow later this year.

Apple in March announced new services that will continue to boost services revenue in the future. Apple News+, a $9.99 per month service that provides unlimited access to more than 200 magazines, has already launched, and later this year Apple is introducing Apple Arcade, Apple TV+, and a new Apple Card credit card.


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Apple Reports Q3 2019 Results: $10B Profit on $53.8B Revenue, Highest June Quarter Revenue Ever [Live Blog]

Apple today announced financial results for the third fiscal quarter of 2019, which corresponds to the second calendar quarter of the year. For the quarter, Apple posted revenue of $53.8 billion and net quarterly profit of $10.0 billion, or $2.18 per diluted share, compared to revenue of $53.3 billion and net quarterly profit of $11.5 billion, or $2.34 per diluted share, in the year-ago quarter.

The revenue figure was Apple's highest ever for the June quarter, just beating out the year-ago quarter, although profits dipped on lower margins.

Gross margin for the quarter was 37.6 percent compared to 38.3 percent in the year-ago quarter, with international sales accounting for 59 percent of revenue. Apple also declared a quarterly dividend payment of $0.77 per share, payable on August 15 to shareholders of record as of August 12.


This is the third quarter 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.
“This was our biggest June quarter ever — driven by all-time record revenue from Services, accelerating growth from Wearables, strong performance from iPad and Mac and significant improvement in iPhone trends,” said Tim Cook, Apple’s CEO. “These results are promising across all our geographic segments, and we’re confident about what’s ahead. The balance of calendar 2019 will be an exciting period, with major launches on all of our platforms, new services and several new products.”
Apple's guidance for the fourth quarter of fiscal 2019 includes expected revenue of $61–64 billion and gross margin between 37 and 37.5 percent.


Apple will provide live streaming of its fiscal Q3 2019 financial results conference call at 2:00 p.m. Pacific, and MacRumors will update this story with coverage of the conference call highlights.

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Apple Pay Coming to NYC Transit System in Early Summer

Apple CEO Tim Cook today shared some details on upcoming Apple Pay providers during Apple's earnings call covering the second fiscal quarter of 2019.

Ticketmaster is set to begin accepting Apple Pay for ticket purchases on the web in the near future, and more than 50 entertainment and sporting event venues are launching contactless tickets this year, including most NFL stadiums.


New York's MTA transit system is piloting Apple Pay on a couple of lines at the current time, and Cook says Apple Pay will roll out to the rest of the lines in "early summer," which is new information.

Cook believes the introduction of Apple Pay support for transit systems across the U.S. will bring in even more Apple Pay customers who don't currently use the payments service.

Apple Pay transaction more than doubled year over year, and Apple is on track to reach 10 billion transactions in 2019. Apple Pay is available in 30 markets, which Apple expects to expand to 40 markets by the end of the year.

Related Roundup: Apple Pay

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Apple’s Wearables, Home and Accessories Category Sets New Q2 Revenue Record of $5.1 Billion

Apple CFO Luca Maestri today said that Apple's Wearables, Home, and Accessories category, which includes devices like the AirPods and the Apple Watch, set a new March quarter revenue record of $5.1 billion.

According to Maestri, AirPods demands continues to be "off the charts," while earlier in the call, Apple CEO Tim Cook said AirPods are a "cultural phenomenon."


As for Apple Watch, it continues to be the best selling smart watch in the world, with three quarters of Apple Watch sales during the quarter going to first time Apple Watch owners.

The Apple Watch saw its best quarterly results for a non-holiday quarter, and Apple's wearables business was up close to 50 percent in Q2 2019 and is now the size of a Fortune 200 company.


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Apple Sees All-Time Record Response to New iPhone Trade-In Initiatives

During today's earnings call for the second fiscal quarter of 2019 (first calendar quarter), Apple CEO Tim Cook said that Apple's iPhone trade-in efforts have been highly successful.

According to Cook, Apple saw an all-time record response to the company's trade-in promotions, and Apple saw more than four times the number of trade-ins from the year-ago quarter.


When asked which devices people are trading in, Cook said that it's "all over the place." iPhone 6, 6 Plus, 7, 7 Plus, and fewer 8 and 8 Plus models. Some customers, he says, are on a two-year upgrade cycle, some on a one-year upgrade cycle, and some on three or four year cycles.

Cook said that Apple is aiming to offer better than average trade-in values to provide "extra benefits" to iPhone users.
In our stores we offer a trade-in value that is more than the blue book of the device, for lack of a better description. And so we have topped those up to provide extra benefit to the user.
Apple in November began offering a limited-time promotion that provided up to $100 in additional credit when trading in an iPhone. The program allowed customers to buy a new iPhone XR, XS, or XS Max at a more heavily discounted price when trading in an older device.

Apple is no longer running that specific program, but the trade-in page continues to promote new iPhone pricing that's available when trading in an old iPhone and Apple's prices are better than most other trade-in programs for the iPhone.


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