Apple Earnings Report: Q1 FY 2019

As we speak, Apple introduced its first quarter earnings for the 2019 fiscal 12 months. As the corporate was sure to the iPhone in a stumbling smartphone market, gross sales fell, though some segments outperformed estimates. Quarterly gross sales decreased 5% to $ 84.three billion. The gross margin was 38%, a lower of zero.four% over the earlier 12 months. Working revenue decreased 11.1% to $ 23.three billion. Nonetheless, internet revenue dropped solely zero.5 p.c to $ 19.97 billion, because of decrease taxes. Earnings per share reached an all-time excessive because of share buybacks. Diluted earnings per share have been $ four.18, a rise of seven.four% over the prior 12 months.

Apple Monetary Outcomes for First Quarter 2019 (GAAP)

Q1 & # 39; 2019
This autumn & # 39; 2018
Q1 & # 39; 2018

Income (in billions of )
$ 84,310
62,900 USD
$ 88,293

Gross margin (in billions of USD)
32,031 USD
$ 24,zero84
$ 33,912

Working revenue (in billions of )
$ 23,346
$ 16.118
$ 26,274

Web revenue (in billions of )
19,695 USD
14.125 USD
$ 20,065

margins
38.zero%
38.5%
38.four%

Earnings per share (in USD)
$ four.18
$ 2.91
$ three.89

iPhone gross sales had difficulties, at the least for Apple requirements, and Apple didn’t should report any retail gross sales on account of declining gross sales. In that sense, we are able to solely take a look at gross sales, however this additionally doesn’t give image: gross sales fell year-on-year by 14.9% to $ 51.98 billion. In fact, it's nonetheless a giant gross sales for a single product class.

Regardless of the decline in iPhone income, not all information is unhealthy for Apple. Each Mac and iPad gross sales elevated this quarter. The Mac was up eight.7% to $ 7.four billion and the iPad was up nearly 17% to $ 6.7 billion. These wins positively helped when the iPhone was so profitable.

Apple's wearables, house and equipment, which embrace the Apple Watch, Beats and extra, additionally posted a strong quarter, with quarter-on-quarter income rising 33.three%. With out the paragraph, it's troublesome to determine which segments carry out properly right here. If Apple provides new merchandise to this class, it’ll develop in that respect as properly, however that is strong development.

Apple's providers phase has quickly grown into its secondary unit of gross sales, up 19% to $ 10.9 billion year-on-year.

Apple Q1 2019 phase gross sales (billion USD)

Q1 & # 39; 2019
Q1 & # 39; 2018
12 months / 12 months change

iPhone
51.982 USD
$ 61.104
-14.9%

iPad
$ 6,729
$ 5,775
+ 16.9%

Mac
$ 7,416
$ 6,824
+ eight.7%

Wearables, house and equipment
$ 7,308
$ 5,481
+ 33.three%

Providers
$ 10.875
$ 9.129
+ 19.1%

For the second quarter, Apple expects revenues between $ 55 and $ 59 billion, with a gross margin of between 37 and 38%.

Supply: Apple Investor Relations

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