Apple Posts Q1 2019 Results

Back on January 2nd, I wrote a post about Apple revising its guidance for the first quarter of 2019. Today Apple announced their results.

Apple posted quarterly revenue of $84.3 billion, this is a decline of 5 percent from Q1 2018. Even with revenue being own, the earnings per share is up 7.5 percent, as compared to a year ago, to $4.18 per share

The iPhone’s revenue declined 15 percent, which is why Apple provided the revised guidance earlier this month. However, the revenue from the remaining products were up 19 percent. Services, which is one of the areas that Apple has wanted to highlight is up to $10.9 billion, or 19 percent. Revenue for the Mac was up 9 percent, while Wearables is up 33 percent.

The Wearables revenue is likely primarily driven by two products, the Apple Watch and AirPods. Additional wearables include the Beats headphone line and the HomePod.

Other Tidbits

There are some other tidbits from Apple’s condensed statement.
  • Revenue in America is up about $1.75 billion, or about 5 percent.
  • Revenue in Europe, China, and Japan is down, $691 million, $4.78 billion, and $327 million respectively. This translate to 3.39 percent, 36.3 percent, and 4.73 percent respectively.
  • Revenue in the rest of Asia, outside of Greater China and Japan, is up $75 million, or about 1/10 of a percent.

Q2 2019 Guidance

As with all previous quarters, Apple has provided some guidance for Q2 2019. The guidance provided is:

  • revenue between $55 billion and $59 billion
  • gross margin between 37 percent and 38 percent
  • operating expenses between $8.5 billion and $8.6 billion
  • other income/(expense) of $300 million

Closing Thoughts

Even though Apple had to restate some of its guidance, Apple is on a solid footing for its overall business.

Source: Apple