Apple has reported quarterly revenue of $53.8 billion, up 0.93% over last year with a net profit of $10 billion, down 13% YoY and earnings per diluted share of $2.18, down 7% for the financial year Q3 2019 that ended June 29, 2019. During earnings call Tim Cook said that the company saw significant improvement in year-over-year iPhone performance compared to last quarter, very strong performances for both Mac and iPad and absolutely blowout quarter for Wearables.
Apple CFO Luca Maestri said that Apple set June quarter revenue records in several major developed markets, including the U.S., Canada, Germany, France, Japan, Australia and Korea. In emerging markets, Apple returned to growth in Mainland China, grew strong double digits in India and Brazil, and set new Q3 records in Thailand, Vietnam and the Philippines.
- iPhone revenue was $26 billion, down 12% compared to a year ago. This was significantly better year-over-year performance than last quarter’s 17% decline, with sequential improvement in year-over-year comparisons in 15 of Apple’s top 20 markets.
- Mac revenue was $5.8 billion, up 11% compared to last year. Mac revenue grew in 4 of its 5 geographic segments and set June quarter records in the U.S., Europe and Japan, as Apple’s overall market performance significantly outpaced the global PC industry.
- iPad revenue was $5 billion, up 8%. iPad revenue grew in all 5 of its geographic segments, with a Q3 revenue record in Mainland China and double-digit growth in emerging markets.
- Overall, products revenue was $42.4 billion, down 2% year-over-year, which is significantly better than the 8% decline in products revenue that Apple experienced during the first half of the fiscal year.
- Services revenue grew 13% to a new all-time record of $11.5 billion.
- Apple reached an all-time revenue record in spite of foreign exchange headwinds with double-digit growth from the App Store, Apple Music, cloud services, and AppleCare, and triple digit growth from Apple Pay and its App Store search ad business. All geographic segments had double-digit growth in services revenue and set new June quarter records with all-time records in the Americas and Rest of Asia Pacific.
- Apple now has over 420 million paid subscriptions across the services on its platforms and it is on its way to goal of surpassing the 500 million mark during 2020.
- Wearables, home and accessories revenue accelerated across all its geographic segments, growing 48% to over $5.5 billion and setting a June quarter record. This growth was fueled primarily by the strong performance of its wearables business, which was up well over 50% and has become the size of a Fortune 200 company over the last 12 months.
- In addition, Apple generated double-digit revenue growth from Apple TV and accessories during the quarter.
Apple expects revenue between $61 billion and $64 billion, operating expenses between $8.7 billion and $8.8 billion and gross margin between 37.5 and 38.5 percent for FY Q4 2019.