Dan Pražák Apple announced financial results for the third fiscal quarter of 2019, which corresponds to the second calendar quarter of this year. Despite the not very optimistic forecasts of analysts, this is ultimately the most profitable 2nd quarter of the year in the company's history. However, iPhone sales fell again year-on-year. In contrast, other segments, especially services, performed well.
During Q3 2019, Apple reported revenue of $53,8 billion on net income of $10,04 billion. Compared to $53,3 billion in revenue and $11,5 billion in net profit from the same quarter last year, this is a slight year-on-year increase in revenue, while the company's net profit fell by $1,46 billion. This somewhat unusual phenomenon for Apple can be attributed to lower sales of iPhones, on which the company probably has the highest margins.
Although the trend of declining demand for iPhones is not favorable for Apple, CEO Tim Cook remains optimistic, mainly due to strengthening revenues from other segments.
"This is the strongest June quarter in our history, led by record services revenue, accelerating growth in the smart accessories category, strong iPad and Mac sales, and significant improvement in the iPhone trade-in program." stated Tim Cook and adds: “The results are promising in all our geographic segments and we are confident about what lies ahead. The rest of 2019 will be an exciting time with new services across all our platforms and several new products to introduce.”
It has been a tradition for almost a year now that Apple does not publish specific numbers of iPhones, iPads or Macs sold. As a compensation, he mentions at least the revenues from the individual segments. It is easy to deduce from these statistics that services in particular performed particularly well, securing a record revenue of $3 billion during Q2019 11,46. The category of smart accessories and accessories (Apple Watch, AirPods) also performed well, where Apple recorded a year-on-year increase in revenue of 48%. In contrast, the iPhone segment fell by 12% year-on-year, but still remains by far the most profitable for Apple.
Revenue by category:
- iPhone: $25,99 billion
- Services: $11,46 billion
- Mac: $5,82 billion
- Smart accessories and accessories: $5,53 billion
- iPad: $5,02 billion
