Apple Fiscal Q1 2019 Results: It’s All About ‘Decline’

Thursday, 31 Jan, 2019

Apple reported revenue of $84.3 billion (Dh309.6bn), a 5 per cent year-on-year decline. Mac sales, spurred by the release of the new MacBook Air, were $7.4 billion, up by 9 percent year over year.

Apple's fiscal Q1 2019 revenue clocked $84.3 billion - a decline of 5% YoY. That includes news that products and services within the company grew 19 percent year-over-year.

Apple's global iPhone shipments fell by between seven percent and 15 percent in the fourth quarter of 2018, according to analysts who now no longer have access to official unit-sales figures from Apple.

The sluggish iPhone sales were offset, however, by a 19% growth in services, which reached a new high of US$10.9 billion in revenue.

The recent slump in Apple shares may already reflect falling iPhone sales, leaving investors willing to buy into the company's vision for services. But what they really wanted to talk about - and what they did talk about at length - was services.

Is pricing holding back iPhone sales?

Fiscal second-quarter (FQ2) revenue guidance:$US55 billion to $US59 billion.

"Within this installed base the percentage of users who are paying for at least one service is growing very strongly", Apple CFO Luca Maestri said on the conference call. And the gross margin for services was 62.8 percent, up by over 10 percent compared to a year ago.

After iPhone: How long can Apple wait for the next big thing? Here, Apple was able to increase sales by 8 percent.

Welcome to a reality where people are finding your products extremely expensive.

That growth rate is at the low end of the services-business growth rate over the past two years, which has ranged between 17% and 34%.

In the first quarter, Apple lost almost $4.7bn in revenue from Greater China market.

However, this also marks the first decline for both revenue and profit in a holiday quarter that Apple has posted since the iPhone's introduction more than a decade ago.

Apple doesn't typically communicate with The Register, but this morning your correspondent called the mobile - presumably an iPhone - of Paul Luke, EMEA business director for Apple Retail and asked if there is to be a local dip in the price of its mobes.

The statement said Cuomo and James would probe Apple's slow response and cited media reports that a consumer had made the company aware of the bug more than a week before it took action to disable the FaceTime feature. As of right now, it doesn't seem like Apple will be sharing that information.

"Apple iPhone performance was disappointing", said Neil Mawston, executive director of wireless device strategies at research firm Strategy Analytics in Boston.

Apple's stock price rose 6% in late trading Tuesday as the reported earnings weren't as worrisome as expected and may enable prices to move higher in the near-term.

Apple phones are also facing increased price-based competition from competitors Huawei Technologies and Xiaomi China.