Weak iPhone sales drag down Apple's holiday earnings

Weak iPhone sales drag down Apple's holiday earnings

What is Apple's dividend forecast?

"While Apple is still a money-making machine, today's uncharacteristic revenue decline symbolizes a company that is starting to run out of steam", said Neil Saunders of the research firm GlobalData Retail. It's a weird number to try to soothe investors with, because its rise and fall won't be as closely tied to Apple's overall financial performance as just how many iPhones it sells each quarter and at what average price. And Cook outlined the reasons why Apple's phone sales took a big hit during the quarter.

Apple Registers $84.3 Billion of Revenue in First Quarter of 2019 As iPhone Sale Dip By 15 Percent.

The company's shares rose 6 percent to $163.50 in after-hours trading.

According to Apple, it now has 1.4 billion active devices, an increase of 100 million from a year ago.

Apple Inc. projected quarterly revenue that came close to Wall Street's estimates on Tuesday, suggesting a punishing end to 2018 hasn't gotten much worse. The company's Wearables business, which includes the Apple Watch and AirPods, surged 50 per cent.

"We can expect some kind of price correction going forward as Apple has given indications that they will look at pricing outside the USA closely now", Tarun Pathak, Associate Director at Counterpoint, told IANS.

In the US, Apple priced the iPhone XS the same as the previous generation, the X. In guidance for the current March quarter, Apple told analysts to expect $55 billion to $59 billion in revenue. Foreign exchange rates have substantially increased the price of the iPhone, leading to fewer sales.

FQ1 earnings per share (EPS): $US4.18.

The company's total revenue was $84.3 billion for the last three quarters ending on December 29.

62% of Apple's quarterly revenue came from worldwide sales. That unexpected move raised suspicions that Apple was trying to hide a forthcoming slump in iPhone sales - fears that were realized during the holiday season. Analysts had forecast $US2.62 a share before its report.

Time will tell if Apple can reinvigorate iPhone sales.

More importantly, revenue from the category where Apple makes most of its money - the iPhone fell by a staggering 15 percent. In the same period a year earlier, it made $61.1 billion from its iPhones. However, the positive earnings call did help the company to stay in the green on the Stock Market.

"Within this installed base the percentage of users who are paying for at least one service is growing very strongly", Apple CFO Luca Maestri said on the conference call.

Revenue from iPhone sales, which constitutes almost 60 per cent of the company's overall income, dropped 15 per cent to $52bn, while total revenue from services and other products grew 19 per cent. The stock closed at $154.68 in NY. Its products business posted an operating profit of $US25.2 billion, or 34% of sales.



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