Apple Reports Q3 2019 Results: $10B Profit on $53.8B Revenue, Highest June Quarter Revenue Ever

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Apple today announced financial results for the third fiscal quarter of 2019, which corresponds to the second calendar quarter of the year. For the quarter, Apple posted revenue of $53.8 billion and net quarterly profit of $10.0 billion, or $2.18 per diluted share, compared to revenue of $53.3 billion and net quarterly profit of $11.5 billion, or $2.34 per diluted share, in the year-ago quarter.

The revenue figure was Apple's highest ever for the June quarter, just beating out the year-ago quarter, although profits dipped on lower margins.

Gross margin for the quarter was 37.6 percent compared to 38.3 percent in the year-ago quarter, with international sales accounting for 59 percent of revenue. Apple also declared a quarterly dividend payment of $0.77 per share, payable on August 15 to shareholders of record as of August 12.


This is the third quarter since Apple changed the way it reports its results, with the company no longer providing unit sales data for iPhone, iPad, and Mac. As a result, Apple is only providing revenue figures for its various segments, leaving analysts to estimate unit sales based on their own calculations.
"This was our biggest June quarter ever -- driven by all-time record revenue from Services, accelerating growth from Wearables, strong performance from iPad and Mac and significant improvement in iPhone trends," said Tim Cook, Apple's CEO. "These results are promising across all our geographic segments, and we're confident about what's ahead. The balance of calendar 2019 will be an exciting period, with major launches on all of our platforms, new services and several new products."
Apple's guidance for the fourth quarter of fiscal 2019 includes expected revenue of $61-64 billion and gross margin between 37.5 and 38.5 percent.


Apple will provide live streaming of its fiscal Q3 2019 financial results conference call at 2:00 p.m. Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Earnings call highlights ahead...

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Article Link: Apple Reports Q3 2019 Results: $10B Profit on $53.8B Revenue, Highest June Quarter Revenue Ever
 

Baymowe335

macrumors 603
Oct 6, 2017
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Most June revenue ever.

Y/Y Growth:
  • Mac 11% growth.
  • Wearables staggering 48% growth.
  • Services 13% growth.
  • iPad 8% growth.
  • iPhone 12% decline (which we knew).
You see Apple pivoting away from iPhone to other growth businesses, beautifully.

Amazing job.
 
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falainber

macrumors 68000
Mar 16, 2016
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Compare this to 23% revenue increase for Huawei and it becomes clear who has the momentum.
[doublepost=1564519563][/doublepost]
Mac growth of 11% y/y folks.

Wearables staggering 48% growth.

Services 13% growth.

iPad 8% growth.

iPhone 12% decline (which we knew).
And the services is mostly app store fees and subscriptions and Apple Care. That's not going to explode any time soon (especially taking into account slowing iPhone sales)
 

sw1tcher

macrumors 68000
Jan 6, 2004
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The revenue figure was Apple's highest ever for the June quarter, just beating out the year-ago quarter, although profits dipped on lower margins.
I'm guessing services business has lower margins than products business?

https://www.apple.com/newsroom/pdfs/Q3 FY19 Consolidated Financial Statements.pdf

For the 3 months ended June 30, 2018, Apple sold $43,095 million of products vs the $42,354 million for the 3 months ended June 29, 2019

For the 3 months ended June 30, 2018, Apple sold $10,170 million of services vs the $11,455 million for the 3 months ended June 29, 2019
 

jonblatho

macrumors 65816
Jan 20, 2014
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Some quick takes:
  • iPhone revenue declined, no surprise. More notable is that for the first time in several years, iPhone revenue did not make up a majority of Apple’s total quarterly revenue. (This is, by about any measure, a good thing.)
  • iPad growth is respectable considering the March refreshes were on the low end of the lineup. Nothing mind-blowing. Same for Mac growth…respectable, no surprises.
  • Services growth is slowing, but News+ is the only new service among those announced in March that has launched and some reports seem to imply that it's a dud. If that's the case, Services growth was probably driven mainly by Apple Music. We’ll see if the other new services do better by fiscal Q1 earnings.
  • Growth in Wearables, Home, and Accessories is insane. Almost 50%.
 

Bokito

macrumors regular
May 29, 2007
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Mac growth of 11% y/y folks.

Wearables staggering 48% growth.

Services 13% growth.

iPad 8% growth.

iPhone 12% decline (which we knew).
I like these numbers. Hopefully Apple is going to give the Mac more attention again after years of being neglected. There is a huge potential in the mobile business, but unless batteries get some serious upgrades, there is not much more to explore in the near term. There is a whole range of features the Mac could get and the whole world could benefit from. Hopefully Apple takes this serious now.
 
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Michael Scrip

macrumors 603
Mar 4, 2011
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Off-topic... does anyone even track companies like HTC anymore?

We all know "Apple is doomed, but not really"

So how do those other companies even stay afloat?
 

BuddyTronic

macrumors 65816
Jul 11, 2008
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Booya!


Well done MacRumors - I love those graphs and look forward to them every quarter
 
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nutmac

macrumors 601
Mar 30, 2004
4,169
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Most June revenue ever.

Y/Y Growth:
  • Mac 11% growth.
  • Wearables staggering 48% growth.
  • Services 13% growth.
  • iPad 8% growth.
  • iPhone 12% decline (which we knew).
Services growth is misleading. Yes, it has grown 13% year-over-year. But services is supposed to be largely recurring revenue. Quarter-over-quarter, services was static at 0% change.

Hopefully, Apple will revitalize their internal services revenue (not third party apps subscription) with Apple TV+, Apple Arcade, and iCloud (which will offer folder sharing). I think the success depends on Apple offering a compelling bundle. I doubt meaningful number will pay significant sum for Apple TV+ and Apple Arcade individually.
 

Rocketman

macrumors 603
I'm guessing services business has lower margins than products business?
If they put app store revenues and in app sales into that, it is capped at 30% less costs. They probably associate most server costs with this business segment, lowering it further.

Apple originated services are much higher than average margin.

Also stated a big portion of the services "miss" was exchange rates. I can see that. No idea the magnitude, but under 3% on $11.4B.
 
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