Apple has reported quarterly revenue of $64 billion, up 1.74% over last year with a net profit of $13.7 billion, down 2.83% YoY and earnings per diluted share of $3.03, up 4.1% for the financial year Q4 2019 that ended September 28, 2019. During earnings call Tim Cook said that it was Apple’s highest revenue in a September quarter ever, and the company set new Q4 revenue records in the Americas and rest of Asia-Pacific and saw further improvement in revenue trends in Greater China.
Apple CFO Luca Maestri said that Apple set new fourth quarter revenue records in Americas and rest of Asia-Pacific segments. It also saw continuous improvement in Greater China where year-over-year revenue comparisons became more favorable each quarter of fiscal 2019 from a 27% decline in the first quarter to a 2% decline in the fourth quarter.
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- At a country level, Apple established new Q4 records in many major developed and emerging markets including the U.S., Canada, Germany, France, Korea, Singapore, Brazil, India, Thailand, Malaysia and Vietnam.
- Products revenue was $51.5 billion, down 1% from last year, mainly due to iPhone, but largely offset by very strong performance from Wearables and iPad.
- iPhone revenue in the September quarter was $33 billion. This 9% decline over last year is a significant improvement over the 15% decline across the first three quarters.
- iPad generated 17% growth driven by iPad Pro, up 17% from a year ago. iPad revenue grew in all five geographic segments with a Q4 revenue record in Japan. In total, over half of the customers purchasing iPads during the September quarter were new to iPad, and the iPad active installed base also reached a new all-time high.
- Mac generated $7 billion in revenue, down 5% from last year due to a different mix of products, given the strength of MacBook Air line-up and a difficult comparison to last year’s launch of MacBook Pro models.Despite the tough compare, Apple generated an all-time revenue record for Mac in the US and in India and a fourth quarter revenue record in Japan.
- Wearables, Home and Accessories established a new fourth quarter record with revenue of $6.5 billion, up 54% year-over-year with growth accelerating from the third quarter across all five geographic segments.
- Services revenue was $12.5 billion, up 18% over last year and it beats the previous record set in the June quarter by more than $1 billion. Services saw double-digit services revenue growth and all-time records in all five of geographic segments
- Apple now has 450 million paid subscriptions across the services compared to over 330 million just a year ago, and will cross 500 million mark during 2020.
- All told, outside of iPhone, revenue grew by $17 billion to almost a $118 billion.
- Apple Pay is now live in 49 markets around the world with over 6,000 issuers on the platform.
Apple expects revenue between $85.5 billion and $89.5 billion, operating expenses between $9.6 billion and $9.8 billion and gross margin between 37.5 and 38.5 percent for FY Q1 2020.