Apple today announced their first quarter 2019 earnings. The fiscal quarter included the holiday season of 2018 and while Apple made earlier warnings about revenue not hitting target, overall it was not a bad quarter. In fact, it was their second best quarter ever.
No, Apple is not dying. Apple is shifting. The shift is coming in the form of services and less on hardware. Hardware is, and will be, a key part of the revenue puzzle for the Cupertino tech giant, but it will be a lesser role than before now.
Overall, Apple reported revenue of $84.31 billion and net quarterly profit of $19.96 billion. Q1 2018 numbers were $88.3 billion and net quarterly profit of $20.1 billion. Part of this was revenue from iPhone. It declined 15% year-over-year but it wasn’t the only culprit. Revenue from China dropped 26.7% year-over-year. That, as previous reports suggested, was a huge impact on Apple’s financials.
But it is not all doom and gloom. Services revenue reached an all-time high of $10.9 billion for the quarter with Apple Music passing the 50 million subscriber plateau during the quarter. Apple News also set a recored of over 85 million active monthly users. Given the upcoming subscription service that is expected in April of this year, expect this number and an attached revenue number to grow too.
Overall, Apple reports 1.4 billion active devices with over 360 million pad subscribers to various services. Apple Pay saw 1.8 billion transactions in the quarter and the wearables business is actually bigger than iPad revenue now, despite iPad revenue being up 17% year-over-year. 1.4 billion active devices
Looking forward to the second quarter, the company is projecting another down quarter. They are projecting between $55-59 billion in revenue. Last year it was $61.6 billion.
At the end of the day, the company did have a solid quarter. They only made a profit of $19.96 billion. Fortunately, Wall Street is not punishing the company too hard in after hours trading. At the time of this post, APPL stock was up $8.73 per share, selling at $163.50 (16:36 Mountain)